US stocks halt their slide after the Treasury Department moves to ease pressure from the bond market
Stocks rose as the Treasury doubled long-term bond buybacks, easing yield pressure and helping major indexes recover after a four-day slide.
- On Wednesday, the U.S. Treasury Department announced it will at least double buyback operations for longer-dated Treasury bonds from Sept. 9 through Nov. 4, targeting liquidity support in 10- to 30-year sectors.
- Global bond yields surged to multi-decade highs this week as concerns over inflation and government debt strained financial markets, prompting the Treasury's intervention to curb the recent selloff in long-duration debt.
- Moderna surged 177% after reporting positive cancer-vaccine study results with Merck, which jumped 12.6%, providing essential support to the S&P 500 amid broader economic anxieties.
- The S&P 500 snapped a 3-day losing streak on Wednesday, gaining 0.2%, as yields on the 10-year Treasury fell to 4.64% from 4.71% and the 30-year note dropped to 5.18% from 5.28%.
- Skepticism remains about long-term effectiveness, as BNP Paribas strategists labeled the buybacks "necessary, but not sufficient" to offset declining Fed credibility; the limited scale leaves investors questioning whether relief will persist.
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147 Articles
Asian markets extend rally as traders assess US Treasuries pledge - Markets
The lack of progress on reopening the Strait of Hormuz added to unease on trading floors, with oil prices gradually rising over the past two weeks as the United States and Iran remain deadlocked.
Asian markets extend rally as traders assess US Treasuries pledge
Asian stocks edged higher on Friday as investors assessed the US Treasury's move to push down long-term bond yields, while analysts warned that alone would not be enough to keep borrowing costs from spiking.
Biotech and Merck's laboratory announced on Wednesday 19 August that they had achieved convincing results in the fight against melanoma in the final phase of a clinical trial. In reaction, Moderna's action almost tripled in a stock market session.
The New York Stock Exchange negotiates in fall at the beginning of the session this Thursday, August 20, reversing the positive trend it recorded throughout yesterday, which was marked by the announcement of the U.S. Treasury Department to double the volume of buybacks of long-term bonds (from 10 to 30 years). By index, the industrial Dow Jones declines 0.64% (53.120.07), followed right behind by Nasdaq (-0.38%) and S&P 500 (-0.24%). The oil mar…
Why the bond market is acting like it did before the Great Recession
Normally quiet, the bond market can occasionally send warning signals loud enough to hit stock markets worldwide and even grab the attention of U.S. presidents and other world leaders. After the bond market’s alarm bells rose in volume through the summer, the Trump administration announced on Wednesday a move that could help calm it down. The U.S. Treasury Department said it will more than double the amount of U.S. government bonds that it will …
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