Economic Information Daily News (24th exclusive) The US Department of the Treasury announced it will repurchase up to $6 billion in 20- to 30-year Treasury bonds this Thursday, the second time conducting such an operation with a cap of $6 billion following Treasury Secretary Bessent's expansion of the long-term bond repurchase program.
The Treasury hopes that by repurchasing longer-term, less liquid bonds, it can improve market liquidity and alleviate pressure from rising borrowing costs.
After the announcement, long-term bond prices came under further pressure, and yields rose significantly. The 10-year bond yield rose as high as 5.058%, the highest since July 2007. The 5-year bond yield rose above 5% for the first time in nearly 20 years, hitting a 20-year high.
The 2-year US Treasury yield rose about 8 basis points to 4.464%, while the 30-year yield also rose over 4 basis points to 5.347%, approaching the recent monthly high of around 5.4%, the highest since 2007. (yc)
The Treasury hopes that by repurchasing longer-term, less liquid bonds, it can improve market liquidity and alleviate pressure from rising borrowing costs.
After the announcement, long-term bond prices came under further pressure, and yields rose significantly. The 10-year bond yield rose as high as 5.058%, the highest since July 2007. The 5-year bond yield rose above 5% for the first time in nearly 20 years, hitting a 20-year high.
The 2-year US Treasury yield rose about 8 basis points to 4.464%, while the 30-year yield also rose over 4 basis points to 5.347%, approaching the recent monthly high of around 5.4%, the highest since 2007. (yc)
