#us30yearyieldhitshighestsince2002 US
TREASURY DOUBLES LONG-TERM DEBT BUYBACKS AFTER YIELDS HIT MULTI-DECADE HIGHS
The
US Treasury unexpectedly announced it will at least double the size of its liquidity-support buybacks for 10- to 30-year
government debt, increasing the maximum from $2 billion to at least
$4 billion per operation beginning September 9.
The move comes after the 30-year yield surged to roughly 5.34%, its highest level since 2007.
Long-term Treasurys immediately rallied on the announcement, sending the 30-year yield back toward 5.2%.
Treasury says the purchases are intended to improve liquidity in older, less-liquid government debt. In reality, this is an artificial way to suppress yields.
Expect the move to reignite the debate over whether Treasury buybacks are effectively a form of “mini-QE.”$SUI $DOT $RENDER
TREASURY DOUBLES LONG-TERM DEBT BUYBACKS AFTER YIELDS HIT MULTI-DECADE HIGHS
The
US Treasury unexpectedly announced it will at least double the size of its liquidity-support buybacks for 10- to 30-year
government debt, increasing the maximum from $2 billion to at least
$4 billion per operation beginning September 9.
The move comes after the 30-year yield surged to roughly 5.34%, its highest level since 2007.
Long-term Treasurys immediately rallied on the announcement, sending the 30-year yield back toward 5.2%.
Treasury says the purchases are intended to improve liquidity in older, less-liquid government debt. In reality, this is an artificial way to suppress yields.
Expect the move to reignite the debate over whether Treasury buybacks are effectively a form of “mini-QE.”$SUI $DOT $RENDER