By Niket Nishant and Rae Wee Aug 20 U.S. government bonds sold off following a brief reprieve on Thursday, pushing yields higher again and keeping stocks under pressure as investors questioned whether U.S.
Treasury support measures would provide lasting relief
Yields on the 30-year U.S. government bond rose 2.74 basis points to 5.2214% after falling to 5.1765% earlier, a day after the Treasury’s pledge to buy back more longer-dated debt. Yields move inversely to prices. The moves were being closely watched to gauge markets’ faith in the U.S.
Treasury’s ability to stem a rout that has sent shockwaves across multiple asset classes. An MSCI index of global stocks fell for four consecutive sessions, its longest losing streak since March, before a 0.30% gain on Thursday. “The buyback announcement is more of a band-aid than a panacea. But it is a reminder that the Treasury Department is paying attention and will do whatever it can to keep yields from getting too high too quickly,” said Lawrence Gillum, chief fixed-income strategist for LPL Financial.