US Treasury to double long-dated debt buybacks to battle surging yields

US Treasury announced it will double long-dated debt buybacks from about $2 billion to $4 billion in the 10-20 year and 20-30 year segments, effective September 9 to November 4, to counter surging yields. The move followed a sharp bond selloff that pushed the 30-year Treasury yield to a 19-year high of 5.34 percent before the announcement drove it as low as 5.187 percent, the biggest daily fall since late June, while the 10-year yield fell 6 basis points to 4.65 percent. Market analysts questioned the lasting impact, noting the additional amount is modest relative to the $32.2 trillion Treasury debt market and that US public debt is set to cross $40 trillion amid persistent fiscal concerns.