Treasury Buyback
Definition
Operations in which the Treasury buys back older, less-liquid (“off-the-run”) securities to support market liquidity and manage cash.
Why investors care
Buybacks are a newer Treasury tool that can improve liquidity in the world’s most important bond market and smooth cash management.
What to watch
Liquidity-support buybacks target off-the-run issues; cash-management buybacks are about the Treasury’s balance, not the curve.