Can a threefold buyback not suppress it? The U.S. Treasury plans to buy $6 billion in U.S. debt, and the 10-year yield has risen to 4.84%.

On Wednesday, the U.S. Treasury Department announced it would purchase $6 billion in U.S. Treasury bonds through a repurchase operation, tripling the normal scale of such operations. The Treasury stated that this move aims to improve liquidity in the U.S. Treasury bond market and maintain stable market operations. However, against the backdrop of long-term U.S. Treasury yields rising to rare heights not seen since the global financial crisis of 2008, this significant expansion of the repurchase scale is seen by the market as the Treasury's latest attempt to "cool down" the continuously climbing yields. According to information released by the U.S. Treasury, this repurchase mainly targets issued 10-year and 20-year U.S. Treasury bonds, with actual operations taking place on Thursday. The entire repurchase window will last 20 minutes and is scheduled to end at 2 PM Eastern Time. The $6 billion repurchase scale is three times the regular operation and further realizes U.S. Treasury Secretary Janet Yellen's previous commitment to expand the Treasury bond repurchase program. On August 19, Yellen announced that the Treasury would at least double the normal repurchase scale for issued Treasury bonds. As long-term U.S. Treasuries faced sustained selling pressure and rising yields recently, the Treasury ultimately expanded the single repurchase scale to three times the regular level, drawing significant market attention. From an official perspective, the U.S. Treasury's bond repurchase is primarily aimed at improving the liquidity of older bonds and enhancing the efficiency of the Treasury market. As new bonds are continuously issued, the trading activity of some older Treasury bonds may decline. By repurchasing these securities from the secondary market, the Treasury can improve the liquidity of the relevant maturity bonds. However, the timing of this operation is particularly sensitive. Recently, the yields on long-term U.S. Treasury bonds have been rising steadily and have once approached heights not seen since the 2008 global financial crisis. Therefore, the market widely regards the Treasury's expansion of the repurchase scale as one of the measures to attempt to curb the further rapid rise in Treasury yields. However, after the Treasury announced the news, the bond market did not immediately develop in the direction policymakers may have hoped. On Wednesday, U.S. Treasury yields further increased, with the benchmark 10-year Treasury yield briefly reaching 4.841%, rising nearly 4 basis points that day. Bond yields move inversely to prices, indicating that despite the Treasury's announcement to expand repurchases, the Treasury bond market still faces selling pressure. This market reaction also suggests that merely expanding the bond repurchase scale has yet to reverse investors' cautious stance on long-term U.S. Treasury bonds. Just a day earlier, Yellen explained the reason behind the Treasury's expansion of its repurchase program for older maturity U.S. Treasuries, stating that the bond market was taking on a "feverish" state, and her responsibility is to strive to push the market back to a more balanced level. Yellen emphasized that the Treasurys repurchase actions are not quantitative easing, but rather closer to operations aimed at improving market functioning and adjusting debt structure. The $6 billion repurchase to be conducted on Thursday will serve as an important observation window for the market. Following the Treasury's direct increase of the repurchase scale to three times the regular level, investors will closely monitor actual bidding situations as well as market reactions for 10-year and 20-year U.S. Treasuries to determine whether this measure can truly enhance liquidity and alleviate the pressures of rising long-term Treasury yields.