The US Treasury’s expanded buyback program triggered a 9 basis point decline in 30-year yields and a three-month low for the dollar.
The US Treasury announced it will more than double its long-dated bond buybacks to at least $4 billion, targeting 10-30 year maturities. The move followed a sustained selloff in bonds, with 30-year yields retreating 8 to 9 basis points within hours of the announcement, signaling active intervention to stabilize markets.
Prior to the decision, yields had been under multi-week pressure, and the dollar had strengthened on hawkish FOMC minutes. The buyback program’s expansion eased financial conditions, pushing the dollar to a three-month low and helping US equities recover from a three-day losing streak.
The S&P 500 and Dow Jones closed higher, though chip stocks remained under pressure due to unresolved AI capital expenditure concerns. The Treasury’s move overshadowed the Fed’s hawkish tone, redirecting market focus to liquidity support.