US Treasury announces $6 billion long-term bond buyback
The U.S. Treasury increased its planned repurchase of long-dated debt to $6 billion, triple the previous limit, though long-term yields remained at multi-week highs.
US Treasury yields rose as investors remained concerned about rising government debt and persistent inflation. On Wednesday, the Treasury announced a plan to purchase up to $6 billion of debt maturing in 10 to 20 years in its next buyback operation. This maximum is triple the previous limit of $2 billion and exceeds the $4 billion minimum Treasury Secretary Scott Bessent had outlined last month. Some market participants expected an even larger buyback, with expectations reaching as high as $10 billion. Although the repurchase program was scheduled for Thursday, analysts note the move did little to ease concerns regarding fiscal deficits and elevated borrowing costs. Consequently, long-term yields climbed to multi-week highs.
