Treasury doubles long-bond buybacks as 30-year yields test highs
What's new: The move briefly knocked the 30-year yield down about 10 basis points, but traders quickly questioned whether it can last.
The Treasury Department moved to at least double liquidity-support buybacks for US government bonds in the 10-year to 30-year sector, as officials try to ease pressure from the highest long-term borrowing costs in years. The step briefly sent the 30-year yield down as much as 10 basis points to 5.18% and pushed the dollar to its weakest level in three months. But the relief faded quickly, with investors doubting that purchases that may top $4 billion can reverse a broader selloff in long-dated debt. Elevated yields have lifted mortgage and other borrowing costs, raised federal financing costs and added political pressure ahead of the November midterm elections.