🚨 US Treasury just announced a $6 BILLION buyback of long-term debt — tripling the size of its previous long-duration operation. 👀
Back on August 19, the Treasury said it would at least double buybacks of 10–30 year Treasury securities to a minimum of $4 billion per operation.
Now, just three weeks later, they’ve gone even further with a $6B operation targeting 10- and 20-year Treasuries. That’s a major escalation in the Treasury’s effort to improve liquidity and ease pressure in the long-end of the bond market.
But here’s the interesting part 👇
The market isn’t exactly impressed. Treasury yields actually pushed higher after the announcement, with the 10-year yield reaching around 4.85%, while longer-term yields remained elevated.
Why does this matter? 📊
Higher Treasury yields can mean tighter financial conditions, more expensive borrowing, and additional pressure on stocks and risk assets.
And for gold traders, this is definitely something to watch. 👀
The big question now is:
Can $6B in Treasury buying calm the bond market — or is it simply too small to fight the much bigger problems of rising debt, inflation and elevated yields? 🇺🇸💰#USAugustPPIRisesLessThanExpected #SECApprovesNasdaqTexasCommodityTrustRule #ECBRaisesRatesSecondTimeTo2.5% #USContinuingJoblessClaims1.774M #USAugustPPIYoYRisesTo5.4%
Back on August 19, the Treasury said it would at least double buybacks of 10–30 year Treasury securities to a minimum of $4 billion per operation.
Now, just three weeks later, they’ve gone even further with a $6B operation targeting 10- and 20-year Treasuries. That’s a major escalation in the Treasury’s effort to improve liquidity and ease pressure in the long-end of the bond market.
But here’s the interesting part 👇
The market isn’t exactly impressed. Treasury yields actually pushed higher after the announcement, with the 10-year yield reaching around 4.85%, while longer-term yields remained elevated.
Why does this matter? 📊
Higher Treasury yields can mean tighter financial conditions, more expensive borrowing, and additional pressure on stocks and risk assets.
And for gold traders, this is definitely something to watch. 👀
The big question now is:
Can $6B in Treasury buying calm the bond market — or is it simply too small to fight the much bigger problems of rising debt, inflation and elevated yields? 🇺🇸💰#USAugustPPIRisesLessThanExpected #SECApprovesNasdaqTexasCommodityTrustRule #ECBRaisesRatesSecondTimeTo2.5% #USContinuingJoblessClaims1.774M #USAugustPPIYoYRisesTo5.4%
