Overview
- The U.S. Department of the Treasury announced on Wednesday that it will raise the per-operation limit for 10‑ to 30‑year Treasury reopenings to at least $40 billion, with operations scheduled from Sept. 9 through Nov. 4.
- The announcement triggered immediate bond buying that pushed long-term U.S. yields lower and briefly lifted stocks and the yen into the low‑158 per dollar range.
- Those gains proved short lived as yields climbed again the next day and New York stocks plunged about $704, driven by renewed inflation and oil-price worries and stronger U.S. rhetoric toward Iran.
- Tokyo trading swung sharply over two days with the Nikkei falling more than ¥2,100 on heavy selling then rebounding on bargain buying, while the Bank of Japan published a September reference USD/JPY rate of ¥163.
- Market participants say the buybacks can improve Treasury liquidity and calm yields temporarily but that further moves in oil prices, geopolitics and U.S. fiscal or policy signals will determine whether the relief lasts.