CNBC Daily Open: Treasury attempts to rein in bond yields as U.S. debt swells past $40 trillion

The US Treasury Department has taken steps to calm the bond market by doubling its purchases of longer-dated bonds. This move led to a decrease in yields and provided some relief to stocks. According to Straits Times Business, the 30-year Treasury yield had reached a 19-year high of 5.337% before dropping 9 basis points to 5.184% after the announcement.

The Treasury Department's decision to increase its buyback operations for securities dated from 10 to 30 years aims to lower borrowing costs. This move came after yields hit multi-decade highs. As Investing.com and New Straits Times reported, analysts such as Tony Sycamore from IG and Brian Jacobsen from Annex Wealth Management noted that this action is a signal that Washington is prepared to lean against rising term premia, but it is not formal quantitative easing or yield curve control.

The US public debt has surpassed $40 trillion for the first time, having surged by a third in less than five years, as disclosed by the Treasury Department. This development has also had an impact on gold prices, which saw their biggest gain in six months, trading above $4,500 an ounce, as reported by Straits Times Business and The Business Times - Companies & Markets.

Brief written by urgent.news from CNBC World, Straits Times Business, Investing.com, New Straits Times, The Business Times - Companies & Markets — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.