Treasury expands buybacks to $6 billion as yields hit 2023 highs
US bond yields have surged to multi-year highs despite the Treasury’s decision to expand buybacks to $6 billion, a move widely viewed by market insiders as too small to counteract the impact of high oil prices, AI-driven spending, and persistent deficit concerns. The disappointment has intensified debate over the efficacy of the program, with critics arguing it fails to address the underlying fiscal challenges while futures markets increasingly price in the possibility of a Federal Reserve rate hike.
The $6 billion buyback announcement failed to appease investors, with 10-year yields briefly spiking above 4.85% and 30-year yields climbing to 5.29%, as the figure fell short of the $10 billion+ expectations cited by analysts in the GN auto markets/bonds feed. Criticism from prominent figures like Stanley Druckenmiller and market skeptics who view the move as an insufficient fix for structural fiscal issues has further dampened sentiment.
Source: GN auto markets/bonds: bond yieldsThe US Treasury will purchase up to $6 billion in long-term debt this week. This move follows a sharp rise in bond yields to their highest levels since 2023.
Source: GN auto markets/bonds: bond yields
