🇺🇸 The Treasury just told markets it's going to buy back more long-term government debt, and stocks, bonds and the dollar all moved on it.
Starting September 9, Treasury is at least doubling the size of its liquidity-support buybacks in the longer-dated sectors, from a $2 billion cap per operation to at least $4 billion.
In plain terms, the government is stepping in to buy more of its own longer-term bonds, which supports prices and eases pressure in that part of the market.
Markets liked it right away. The S&P 500 popped, the dollar dropped, and the 10-year yield slid toward 4.64%.
More buybacks mean more demand for Treasuries, and traders read that as a friendlier backdrop for stocks.
A technical debt-management tweak, and it moved three major markets in minutes.
Sources: U.S. Treasury, Financial Juice / Writer: Julie
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Starting September 9, Treasury is at least doubling the size of its liquidity-support buybacks in the longer-dated sectors, from a $2 billion cap per operation to at least $4 billion.
In plain terms, the government is stepping in to buy more of its own longer-term bonds, which supports prices and eases pressure in that part of the market.
Markets liked it right away. The S&P 500 popped, the dollar dropped, and the 10-year yield slid toward 4.64%.
More buybacks mean more demand for Treasuries, and traders read that as a friendlier backdrop for stocks.
A technical debt-management tweak, and it moved three major markets in minutes.
Sources: U.S. Treasury, Financial Juice / Writer: Julie
$NVDA.US
$AAPL.US
$GOOGL.US