Treasury doubles long-bond buybacks, knocking 30-year yield lower
Why it matters: The move hit the dollar and briefly pulled 30-year yields down about 10 basis points from their highest level since 2007.
The US Treasury stepped up support for the long end of the bond market, saying it will at least double liquidity-support buybacks for securities in the 10-year to 30-year range. The move came just two weeks after the department released its quarterly buyback schedule and signaled rising concern over borrowing costs near multi-year highs. After the change, the 30-year Treasury yield fell as much as 10 basis points to 5.18%, while the US dollar slid to its weakest level in three months. Elevated long-term yields have kept mortgage and other borrowing costs high and have also increased the government’s own financing burden.