US Treasury Debt Buyback & Yield Curve Simulator

Duration Extraction, Liquidity Premium Compression & Debt Servicing Workbench
Scenarios:
OPERATION PARAMETERS ACTIVE ENGINE
Transmission Channel: Retiring seasoned off-the-run bonds extracts aggregate duration from primary dealers, flattening term premiums and narrowing liquidity discount spreads.
YIELD CURVE DYNAMICS: BASELINE VS SIMULATED POST-BUYBACK D3.JS INTERACTIVE ENGINE
Pre-Operation Baseline
Post-Buyback Yield Curve
Yield Relief Delta (Δ bps)
Tenor Base Yield Post-Op Yield Yield Shift DV01 Extracted Liquidity Spread
MACRO IMPACT TELEMETRY REAL-TIME
Extracted DV01 $41.2M
10Y Yield Shift -7.4 bps
30Y Yield Shift -11.2 bps
Liquidity Spread Δ -4.1 bps
Net Annualized Interest Expense Delta -$1,840M
Net Duration Supply Δ -6.8%
WAM Portfolio Shift -0.32 yrs
Policy Assessment: $30B/mo buyback effectively absorbs 34% of net long-end issuance duration, providing 7.4 bps relief at the 10Y tenor.
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