Treasury Buyback Fails as Bond Yields Rise
The US Treasury's bond buyback failed to stabilize prices, with the 10-year yield spiking to 4.95% after the department purchased only $5.19 billion against a $6 billion cap. This selective execution, which left $10.5 billion in market offers unfilled, confirms that the intervention was insufficient to curb the recent rise in long-term debt yields.
According to GN auto markets/bonds: bond yields, the Treasury actually purchased only $5.19 billion in securities, coming in below the $6 billion cap and contributing to the 10-year yield surging to 4.95%. This selective approach marks the third instance since 2024 where officials declined to fill the maximum quota, signaling a more cautious stance than previously anticipated.
Source: GN auto markets/bonds: bond yieldsAccording to GN auto markets/bonds: bond trading, the 10-year note yield climbed to 4.84% while the 30-year rose to 5.307%, effectively negating the impact of the buyback. The report notes that long-term bonds are enduring their worst decade since 1803, with market participants dismissing the Treasury's move as insufficient firepower compared to historical interventions.
Source: GN auto markets/bonds: bond tradingThe US Treasury's $6 billion bond buyback failed to support prices, with the 7-10 year ETF hitting new lows.
Source: GN auto markets/bonds: bond market
