Starting September 9, the Treasury Department will increase the maximum size of its buyback operations from $2 billion to at least $4 billion|futureatlas.com|CC BY 2.0

The Treasury Department will more than double its government bond buybacks, aiming to ease pressure in the longer-term debt market.

The news drove bond yields lower, one day after 30-year yields climbed to their highest level in 19 years.

Investors concerned about inflation were dumping bonds, driving prices down and yields up.

Starting September 9, the Treasury will increase the maximum size of its buyback operations from $2 billion to at least $4 billion. The purchases will focus on bonds maturing in 10 to 30 years, where investors have recently pulled back.

The Treasury’s move to increase the buybacks this quarter was viewed as Secretary Scott Bessent’s response to recent high yields, which can make government borrowing, mortgages, and other consumer loans more expensive.

However, economists warned that the move will not solve the government’s broader borrowing needs or reduce the large supply of new debt.