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Treasury Doubles Long‑Term Buybacks, Easing 30‑Year Yields and Lifting Stocks

The move to expand buybacks gave short‑term relief to long‑dated Treasury markets while Fed minutes left the possibility of more rate hikes if inflation stays high.

Overview

  • The U.S. Treasury said it will at least double its long‑term buyback program to $4 billion per operation for 10‑ to 30‑year issues, with the program running Sept. 9 to Nov. 4.
  • That announcement helped push the 30‑year Treasury yield down from about 5.33% to roughly 5.18%, which helped U.S. indexes end a multi‑day losing streak on Wednesday.
  • Federal Reserve minutes published this week showed many officials view a further policy rate increase as likely if inflation remains elevated, keeping policy risk for markets alive.
  • Moderna shares jumped about 177% after the company and Merck reported positive late‑stage trial results for a melanoma vaccine, producing an outsized single‑stock and sector impact.
  • Mexico's BMV snapped a four‑day slide and the peso strengthened to about 16.94 per dollar while oil prices rose on renewed Middle East tensions, a mix that could feed back into inflation and policy decisions.