“This increase in buyback operation sizes reflects Treasury’s desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants,” the department said in a statement, pointing to the significant volume of high-quality offers it routinely receives in longer-dated buyback operations.The Treasury bond sell-off comes as the national debt approaches the $40 trillion threshold, according to recently released Congressional Budget Office data. Interest costs on the federal debt have also grown burdensome, with net interest payments consuming a growing share of federal revenues.Several factors have contributed to pressure on the bond market, including the war in Iran, increased competition for financing from companies investing heavily in AI infrastructure, and widening federal budget deficits.JOHNSON LAUNCHES WEBSITE TO TEACH YOUNG VOTERS ABOUT SOCIALISM AND COMMUNISM AHEAD OF MIDTERM ELECTIONSThe Treasury’s announcement also comes after the department recently conducted a joint intervention with Japan to support the yen, which had fallen in July to its weakest level against the dollar in roughly four decades.Despite persistent inflation and rising borrowing costs, the U.S. stock market has remained resilient partly due to a surge in AI investment. The S&P 500 closed at another record high last week, although markets have remained volatile.