Treasury announces upscaled buyback operation for longer-term debt, sending yields lower
The move aims to steady long-term borrowing costs after the 30-year Treasury yield hit its highest level since 2007, officials said.
- The Treasury announced plans to double bond buybacks to at least $4 billion per operation on Wednesday, targeting the 10-year to 20-year and 20-year to 30-year sectors to provide greater liquidity support.
- Following a peak in 30-year bond yields on Tuesday, global debt markets faced significant pressure, prompting the Treasury's intervention to stabilize longer-dated securities.
- The FTSE 100 shrugged off early losses to close higher, gaining 0.1%, while the FTSE 250 rose 0.3% as investors assessed the Treasury's announcement.
- Consumer Price Index inflation rose 2.9% in the 12 months to July, yet market sentiment remained supported by strong earnings, with Oxford Nanopore jumping 14% on improved cost control.
- Oil prices remained elevated as the prospect of any Middle East deal dimmed after President Donald Trump said he would not extend a 60-day truce with Iran.
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The New York Stock Exchange closed the negotiations on Wednesday, August 19, on positive ground, after the US Treasury announced plans to at least double the volume of long-term bond buybacks (from 10 to 30 years). The announcement, made by Secretary Scott Bessent, relieved the bonds' yield (interest rates) — the 30-year yield, which had reached peaks since 2007, declined noticeably — and pushed the dollar for the biggest fall in about three mon…
Sydney Morning Herald
ASX set to rise ahead of jobs data, Wall Street higher as US launches bond buyback; Moderna rockets 177% on cancer trial results
US stocks rose after the US Treasury Department announced a move that could ease pressure coming from the bond market.
Stocks Climb as Treasury Steps In to Support Bonds: Markets Wrap
(Bloomberg) -- Wall Street staged a rebound after the Treasury said it plans to boost buybacks of longer-dated bonds, a signal the US wants to lower borrowing costs after yields hit multi-decade highs.
Channel News Asia
Kitco NEWSGlobal yields fall after US Treasury boosts debt buybacks
NEW YORK, Aug 19 : Longer-dated global bond yields retreated from multi-decade highs, the dollar tumbled and gold jumped on Wednesday after the U.S. Treasury Department said it would boost liquidity support for longer-dated securities, following a broad selloff fueled by fears over swelling sovereign debt.The
The US currency has fallen to the lowest level in three months after a surprising intervention by the US Treasury in the bond market.
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