The U.S. Treasury announced it will double the volume of some long-term government bond repurchase (repo) operations, increasing from $2 billion to at least $4 billion per operation.
The measure aims to improve market liquidity after the 30-year Treasury yields reached their highest level since 2007. With the announcement, bond yields fell back, the dollar lost strength, and futures for the S&P 500 and Nasdaq reacted positively.
The decline in long-term rates also benefited Bitcoin and pushed gold back above $4,500.
Despite the relief, the buyback does not represent an interest-rate cut or a new round of money printing. It is a Treasury intervention to stabilize the trading of the bonds, while the market awaits the Federal Reserve minutes to assess the next steps of monetary policy.