The US Treasury will triple the amount of long-term bond buybacks to up to six billion dollars, instead of the usual two billion. The announcement was made by Treasury Secretary Bessent in mid-August, but the complete details only emerged now. Initially, the North American administration had communicated that the amount would only be doubled.
The operation aimed to stabilize markets, keep various countries' debt liquid, and limit the surge in US bonds. However, the markets were not convinced and yields rose again. 10-year bonds reached 4.839%, the highest value since November 2023, while 30-year bonds rose to 5.292%.
Analysts consulted by CNBC indicated that several investors were waiting for details expecting an amount higher than announced, given that the language used by the Treasury in August indicated that purchases would be "at least" double the usual. The frustrated expectation contributed to the negative market reaction.
In addition to Bessent's announcement, other factors contributed to the rise in yields, namely oil prices that again crossed the 100 dollar barrier for the first time since July, driven by exchanges of fire between Iranians and Americans in the Persian Gulf.
