- Treasury yields have been pushing steeply higher since June, touching levels not seen since before the 2008 Global Financial Crisis. The historic announcement came as total U.S. government debt hit more than $40 trillion, more than double the level of a decade ago.
- The Treasury Department, led by Scott Bessent, said Wednesday it would double the size of its debt repurchases, mainly at the long-end of the yield curve.
- The move sent yields tumbling, with the 30-year yield plunging more than 10 basis points on the day and the 10-year note yield falling more than 6 basis points, reversing this week's earlier advance.
- Bond yields edged higher on Thursday morning after pulling back sharply during the previous session following the Treasury Department's move to dramatically ramp up government debt repurchases in a bid to shore up longer-dated debt.
- The yield on the 30-year Treasury was up 3 basis points at 5.2256%, the 10-year moved 1 basis point higher to 4.6723%, and the 2-year held steady at 4.1727%.
- Traders were also digesting the latest Federal Open Market Committee minutes from July, released Wednesday. Economic data released since the meeting have shown modest monthly price increases, though inflation remains above the Fed's 2% target.
Treasury yields increased on Thursday as traders processed the Treasury Department's announcement to double its debt repurchases, particularly affecting the long-end of the yield curve. The 30-year yield rose 3 basis points to 5.2256%, following a significant drop earlier in the week.1234678
The Treasury's plan, led by Scott Bessent, aims to stabilize longer-dated debt amid rising government debt, which has surpassed $40 trillion, more than double the level from a decade ago. This announcement follows a period of steep increases in Treasury yields since June, reaching levels not seen since before the 2008 Global Financial Crisis.
Earlier in the week, yields had dropped sharply, with the 30-year yield falling more than 10 basis points and the 10-year note yield decreasing over 6 basis points. The market's reaction reflects ongoing concerns about inflation, which remains above the Federal Reserve's target of 2%, despite modest monthly price increases reported in recent economic data.
As traders digest the implications of the debt buyback plan, they are also considering the latest Federal Open Market Committee minutes from July, which were released on Wednesday, adding further complexity to the current economic landscape.910
“The Treasury Department, led by Scott Bessent, said Wednesday it would double debt repurchases, mainly at the long end, sending the 30-year yield plunging more than 10 basis points. Total U.S. government debt has surpassed $40 trillion, more than double a decade ago.”
CNBC
