US Treasury doubles long-bond buybacks as 30-year yields spike
What's new: The initial rally faded within a day, underscoring investor worries over inflation, deficits and heavy borrowing needs.
The US Treasury moved to at least double its buybacks of longer-dated debt after 30-year yields climbed to their highest since 2007, a sign officials are trying to steady a volatile corner of the bond market. Treasury Secretary Scott Bessent said the department could raise repurchases beyond the roughly $4 billion now planned and framed the step as liquidity support during a thin August market. The first market reaction was sharp, with long-dated yields and the dollar falling, but that relief proved brief as yields rebounded Thursday. Investors said buybacks may ease trading strains for now, but will not fix deeper pressures from inflation, large fiscal deficits and sustained borrowing demand.