Bond Yields Spike Despite Treasury Buyback
US Treasury yields initially spiked to multi-year highs despite the announcement of a tripled $6 billion bond buyback program, signaling persistent investor caution. The expanded operation, targeting 10- and 20-year maturities for Thursday, follows a strong $39 billion auction that provided some temporary relief to the market.
Per GN auto markets/bonds: bond trading, the expanded $6 billion buyback is set to execute on Thursday, targeting 10-year and 20-year notes in a 20-minute window ending at 2 p.m. ET. This move fulfills Secretary Bessent’s commitment to significantly scale up operations, though the market’s initial reaction to the announcement remained bearish.
Source: GN auto markets/bonds: bond tradingAccording to GN auto markets/bonds: treasury yields, the Treasury executed a $39 billion 10-year note auction at 4.834%, achieving the best bid-to-cover ratio since 2019. This robust demand helped stabilize prices after yields had briefly spiked to 4.8568% earlier in the session.
Source: GN auto markets/bonds: treasury yieldsUS Treasury yields rose sharply today, defying the expected downward pressure from a new government bond buyback program. The move signals persistent demand for duration risk despite increased supply absorption.
Source: GN auto markets/bonds: bond yields
