🚨 The yield on U.S. 30-year bonds has fallen sharply to below 5.20%, after the Treasury doubled its bond buyback operations for long-term securities. The yield had reached 5.337% yesterday—which was its highest level in 19 years—before dropping to 5.189%. “Buyback” refers to the Treasury entering the market to repurchase bonds it had previously issued. This step withdraws supply from the bond market and pushes prices higher, which in turn lowers yields. The Treasury is increasing the size of these operations for bonds with maturities ranging from 10 to 30 years, rising from $2 billion to $4 billion per category, during the period from September 9 to November 4. The Treasury says the goal of this step is to enhance liquidity, not to affect yield levels. However, timing remains important. The announcement came in the same week in which borrowing costs hit their highest levels since 2007, and the market viewed the move as government intervention to support its debt.