Treasury Accepts $4.078 Billion in Buyback Offers, 68% of Cap
The operation drew $10.489 billion in offers but accepted 12 of 35 eligible issues targeting Treasury securities maturing in 20 to 30 years.
The Treasury accepted $4.078 billion in buyback offers in its latest expanded operation, taking 68% of the $6 billion maximum as long-term yields remained elevated.
The operation targeted nominal coupon securities maturing in 20 to 30 years. The Treasury received $10.489 billion in offers but accepted only 12 of 35 eligible issues.
The accepted amount was below the $5.187 billion purchased in the previous expanded operation, which represented 86% of that operation’s $6 billion maximum. In prior operations, the Treasury had accepted nearly the full maximum.
Prices implied yields of 5.54% to 5.56% for securities maturing from 2047 through 2051. Those yields were about 40 to 45 basis points above the 10-year Treasury yield, which stood between 5.10% and 5.16%.
The two largest purchases were $1.5 billion each of 3% bonds maturing in February 2048 and 1.875% bonds maturing in November 2051. The Treasury also accepted $1 million of 4.625% bonds maturing in February 2055 at a 5.48% yield.
The result followed the Treasury’s expanded buyback operation for long-term debt, which had a $6 billion maximum. Long-term yields spiked as the market assessed the latest results, adding to volatility in the bond market.
