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Bond Yields Jump Despite $6 Bn US Government Intervention
The first buyback under the new regime triples the prior limit, and 30-year Treasury yields briefly touched 5.31%, officials said.
- The Treasury Department announced today that it will buy back a "maximum par amount" of $6 billion in Treasury bonds tomorrow, tripling the buyback amount Yellen initiated previously.
- Bessent announced on August 19 that buybacks for 10-year notes and 20-year and 30-year bonds would double to at least $4 billion, aiming to suppress long-term Treasury yields despite bond market challenges.
- Treasury yields spiked following the announcement, with the 30-year yield hitting 5.31% briefly; a 20-year bond saw its yield rise to 5.12% today, increasing the potential government discount on buybacks.
- Traders expressed disappointment, as the market had hoped for a figure exceeding $6 billion; since Treasury cannot "print money," every buyback is eventually funded by new debt issuance.
- Treasury is shifting debt toward short-term T-bills, which carry unstable interest rates tied to Fed policy, replacing fixed long-term debt with volatile instruments and creating long-term uncertainty.
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22 Articles
22 Articles
Alza came after the Treasury announced that it tripled buybacks for long-term bonds up to $6 billion
The market reaction, however, has been negative and yields on Treasury bonds continue to rise.
·Las Condes, Chile
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Coverage Details
Total News Sources22
Leaning Left2Leaning Right5Center5Last UpdatedBias Distribution42% Center, 42% Right
Bias Distribution
- 42% of the sources are Center, 42% of the sources lean Right
42% Right
L 16%
C 42%
R 42%
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