US Treasury doubles long-bond buybacks, but yields keep climbing
Why it matters: Investors say the move offers only short-term relief as inflation, deficits and heavy borrowing keep pressuring rates.
The US Treasury doubled buybacks of long-dated bonds to at least $4 billion per operation after 30-year yields hit their highest level since 2007, but the step failed to calm broader debt-market fears. Yields rose again Thursday and the dollar strengthened as investors kept focusing on inflation, large fiscal deficits and heavy issuance, including borrowing tied to AI infrastructure. Treasury Secretary Scott Bessent also left open the possibility of increasing repurchases further. Analysts said the intervention may improve liquidity in a thinly traded part of the market, especially in August, but is too small to change the direction of a $32 trillion Treasury market or reverse higher mortgage and borrowing costs.