XAG/USD stabilizes above $67.00 after US Treasury announces liquidity measures to curb long-term bond yields.
Silver (XAG/USD) traded marginally higher at $67.08 in early European trading, extending gains from the previous session. The metal found support as the US Dollar weakened following the Treasury’s announcement of liquidity measures, including buybacks for longer-dated securities, aimed at easing pressure on long-term bond yields after the 30-year note hit a 19-year high of 5.33% this week.
US national debt surpassed $40 trillion on Tuesday, prompting investor demands for higher bond yields. Analysts noted that moderating Federal Reserve tightening expectations and Treasury efforts to contain yields are reducing dollar support. While buybacks may not alter long-term fundamentals, they signal policymakers’ intent to prevent further yield spikes.
Technical indicators remain positive, with the Relative Strength Index above 60 and bulls targeting resistance at $67.10. A break above $67.15 could shift focus toward $72.00.