⚡️BREAKDOWN: Bondholders are offering the US Treasury about 10x its long-end buyback cap. Treasury runs liquidity support buybacks in the 10 to 30 year sectors, capped at $2 BILLION per operation. On Tuesday holders offered $19.87 BILLION. Treasury ended up taking $2 BILLION. Across 22 long-end operations this year, holders have offered more than $520 BILLION against a combined cap of $44 BILLION. When the first long-end operation ran in June 2024, offers covered the cap 1.93 times. On Tuesday they covered it 9.93 times. So Treasury doubled the cap, to at least $4 BILLION per operation from September 9 through November 4. Its stated reason was the "significant volume of high-quality offers" it keeps receiving. Even at $4 BILLION, that is negligible in a market worth $32.2 TRILLION, per Reuters. For context, Treasury launched the 2000 buyback program during an era of budget surpluses. That fiscal year closed with a $237 BILLION surplus, the largest ever recorded in nominal terms, as the government paid down publicly held debt. Today the stated purpose is liquidity support, the deficit is projected at around $2 TRILLION, and the national debt has crossed $40 TRILLION.