Tension in US debt: Treasury announces it will double bond buybacks and manages to lower long-term yields

The US Department of the Treasury has announced that it will more than double the volume of its public debt buybacks. This move led to a sharp drop in bond yields, with the 30-year yield falling to 5.20% from near 5.34%, and the 10-year bond yield dropping by 10 basis points to 4.65%.

The Treasury's decision was made to calm a bond market that had been rattled by surging borrowing costs. According to Euronews, the national debt had climbed past $40 trillion for the first time. The move helped to improve risk appetite, with US equities reversing losses to end higher and the dollar tumbling against its peers.

The announcement also had a positive impact on Asian markets, with Asian markets rallying after the news. The US dollar index fell to its lowest level since May 14, and the euro rose to its highest level since mid-May. According to Straits Times Business, ING global head of markets Chris Turner said the Treasury's move should reassure markets that longer-dated bonds are unlikely to face a disorderly sell-off.

Brief written by urgent.news from The Corner, Free Malaysia Today, Euronews, Straits Times Business, Malay Mail — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.