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.
153 Articles
153 Articles
Treasury Turns To Interventionist Tactics To Lower Interest Rates
The Trump administration’s Treasury Department has become increasingly interventionist in its efforts to bend the forces of global markets to lower the cost of living in the United States, but it is finding that success does not come easily. The assertiveness comes as the U.S. gross national debt topped $40 trillion on Wednesday, a milestone driven largely by growing interest payments to investors who hold government debt. High interest rates an…
The US Treasury wants to curb the return on government bonds with higher buybacks. However, this does not change the core problems of the US – too high spending and too high debt.
At around 14:00 GMT (16:00 in Paris), the Dow Jones was losing 0.65%, the Nasdaq index was declining by 0.60% and the expanded S&P 500 index was dropping 0.31%. The previous day, the US side took advantage of the announcement made by the US Department of Finance, which indicated that it would double - from 9 September - its buy-backs of long-term bonds (10 to 30 years), to bring them to at least $4 billion per transaction, compared to 2 billion …
Coverage Details
Bias Distribution
- 48% of the sources are Center
![[your]NEWS](/_next/image?url=https%3A%2F%2Fgroundnews.b-cdn.net%2Finterests%2Ffb6dc495f74049f513563c33352175eaa0ecd509.jpg%3Fwidth%3D60&w=128&q=75)
Factuality
To view factuality data please Upgrade to Premium
