Bonds: Bessent tries to calm bond markets - announces buyback program
The US government is reacting to the sharp rise in long-term bond yields. There is a slight optimism on the stock markets in early trading on Wednesday.
The US government has announced it will double its bond buyback program to at least $4 billion, a move that drove up bond prices and lowered yields. The decision, made by Finance Minister Scott Bessent, came as a surprise just two weeks after the regular quarterly buyback plan was published. The buybacks will focus on bonds with maturities between 10 and 30 years, and follow a significant rise in US Treasury yields, with 30-year bonds reaching 5.34%, their highest level since 2007.
The yield subsequently fell by 8 basis points to 5.2%. The move had a positive impact on the Wall Street, with major indexes starting the day in the plus.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
