U.S. Treasury Yields News: Buybacks Fail as Rates Push Higher
Key Insights
- U.S. Treasury yields news worsened despite larger long-term debt buybacks.
- The 10-year Treasury yield approached 5% as inflation pressure persisted.
- Bitcoin weakened as higher yields increased pressure across risk assets.
U.S. Treasury yields moved closer to the 5% threshold on Sept. 11 even after the government expanded its long-end debt buyback program. The benchmark 10-year yield reached 4.979% before easing toward 4.95%, extending a global bond selloff driven by inflation, oil and monetary-policy concerns. The 30-year yield also climbed to 5.3836%, its highest level in about 19 years.
The move spread beyond the Treasury market because rising government yields increased discount rates across financial assets. Bitcoin and Ether weakened alongside equities as traders increased expectations for another Federal Reserve rate hike. Higher borrowing costs therefore added another source of pressure to an already fragile risk environment.
U.S. Treasury Yields News Worsens Despite Larger Buybacks
The U.S. Treasury said on Aug. 19 that it would expand long-end liquidity-support buybacks beginning Sept. 9. Treasury raised the maximum size from $2 billion to at least $4 billion per operation.
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