US Treasury plans to boost long-dated debt buybacks to over $4 billion, supporting silver prices amid fiscal concerns.
Silver (XAG/USD) trades near $69.00 per ounce, extending gains for a fourth session as US debt management concerns persist. The US Treasury announced plans to at least double buybacks of longer-dated government debt, aiming to curb rising bond yields with potential purchases exceeding $4 billion.
The move follows efforts to stabilize yields, which officials argue do not reflect economic fundamentals. Prior buybacks were minimal, and consensus expected gradual increases, not a near-term doubling. Silver, a non-yielding asset, benefits from lower rate-cut expectations but may face pressure if energy prices rise.
Markets reacted cautiously as geopolitical tensions, including US sanctions on Iran, threaten energy supply disruptions. Tehran dismissed the measures as ineffective, while vessel traffic through the Strait of Hormuz remains volatile.