The Dow Jones Industrial Average fell 687 points after long-end Treasury yields surged back above pre-buyback levels, erasing Wednesday’s relief rally.
The Dow Jones Industrial Average closed at 52,799, down 687 points or 1.29%, retreating below 53,000 for the first time this month. The decline followed a sharp reversal in long-end Treasury yields, which erased gains from the prior session’s liquidity-support repurchases announced by the Treasury Department.
The 10-year note yield settled near 4.70%, above its pre-announcement level, while the 30-year yield climbed to 5.25%, nearing multi-decade highs. The Treasury Secretary stated repurchase operations could exceed 4 billion Dollars per issue, citing impaired liquidity and temporary geopolitical distortions, but yields resumed rising after a brief dip during his remarks.
Markets questioned the efficacy of the repurchase facility, which shifts financing from long-dated bonds to bills, as liquidity concerns persisted despite the intervention. The move underscored skepticism over whether the tool would address underlying yield pressures.