Treasury’s Potentially Limitless Buybacks Cloud T-Bill Outlook

Markets Bonds Contact us:Provide news feedback or report an error Confidential tip?Send a tip to our reporters Site feedback:Take our Survey By Alex Harris August 19, 2026 at 5:54 PM UTC The US Treasury Department’s decision to boost buybacks of long-dated bonds is complicating the outlook for issuance of short-term securities, including Treasury bills, which are expected to be used to finance the plan. Treasury’s plan to increase “by at least double, the size of liquidity support buyback operations” came just two weeks after the department said in its quarterly refunding announcement that buybacks would continue at the same size. It also projected a seasonal drop in Treasury bill supply due to corporate tax inflows in September.