The US Treasury will double its buybacks in the face of rising debt
The U.S. Treasury Department announced on Wednesday that it will double the volume of its bond buyback operations, to at least $4 billion per operation, in order to "support liquidity" in long-term securities (10 to 20 years and 20 to 30 years).
The US Treasury Department has announced it will double the size of its long-term debt buybacks to at least $4,000 million, aimed at providing liquidity to bonds with maturities of 10-20 years and 20-30 years. The move comes after a surge in sales drove financing costs to multi-year highs, with the 30-year bond yield falling 0.09 percentage points to 5.2% and the 10-year yield dropping 0.07 percentage points to 4.64% following the announcement.
The decision is intended to support the long end of the yield curve amid growing tensions in the world's most important bond market, with investors concerned about inflation and the growing weight of US public debt. The Treasury's move is seen as a significant signal to the market that it is concerned about selling pressure on the long end of the yield curve.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
