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Treasury announces upscaled buyback operation for longer-term debt, sending yields lower
- On Wednesday, The Treasury Department announced plans to more than double its buyback operations, raising the maximum size from $2 billion to at least $4 billion for 10- to 20-year and 20- to 30-year sectors.
- Treasury targeted these long-dated nominal sectors following a buyers' strike that began in late June, which combined with inflation concerns and expanding government debt to push yields to nearly 20-year highs on Tuesday.
- Markets reacted sharply to the announcement, with the benchmark 10-year note yield falling 6 basis points to 4.647% and the 30-year bond tumbling 9 basis points to 5.196%.
- This intervention comes as the national debt climbed to $39.9 trillion, with annual interest payments projected to exceed $1 trillion this year, consuming about 19% of federal revenue according to the Peter G. Peterson Foundation.
- Projections from the Bipartisan Policy Center indicate the government could reach the $41.1 trillion statutory limit by 2027, prompting Senate Majority Leader John Thune to warn of an "ever looming Debt Ceiling disaster.
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The yield of 30-year US government bonds at times reached the highest level in 20 years. The Treasury now wants to double the buybacks, which makes it easier.
·Düsseldorf, Germany
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(New York = Yonhap News) Jin Jeong-ho, Yonhap Infomax Correspondent = The New York stock market opened with a strong rally.
·Seoul, Korea (the Republic of)
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Treasury doubles debt buyback size for longer-term bonds, sending yields lower
Treasury doubles debt buyback size for longer-term bonds, sending yields lower Click this link for the original source of this article. Author: CNBC This content is courtesy of, and owned and copyrighted by, https://www.offthepress.com and its author. This content is made available by use of the public RSS feed offered by the host site and...
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Total News Sources25
Leaning Left2Leaning Right8Center6Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
13%
C 37%
R 50%
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