Treasury’s plan to double long-dated debt buybacks sparks rally in precious metals miners, lifting shares to midday highs.
Hecla Mining (HL) and Coeur Mining (CDE) shares climbed 13% to $20.29 and $20.83, respectively, in midday trading Wednesday. The gains follow the Treasury Department’s announcement to double buybacks of long-dated government debt, pushing yields lower and lifting precious metals prices.
Both stocks had underperformed the broader metals rally this year, with Hecla down 6% and Coeur up just 4% year-to-date through Tuesday. Silver miners like First Majestic Silver (AG) and Endeavour Silver (EXK) have also lagged the underlying metal, despite its strength in 2024.
The 30-year Treasury yield, currently at 5.2%, remains a critical driver. Further declines could extend the rally, while a reversal may erase Wednesday’s gains quickly.