The Treasury doubles buybacks to stabilize long-term bond markets as 30-year yields hit 2007 highs on inflation concerns.
The US Treasury announced plans to double its debt buybacks to $4.08 billion, aiming to enhance liquidity in the long-term bond market. The move follows a sharp rise in yields, with 30-year Treasury yields reaching their highest level since 2007 amid persistent inflation fears.
Yields on 10-year, 20-year, and 30-year Treasury notes hit 20-year highs this week, driven by investor concerns over inflation and geopolitical tensions. Annualized US inflation stood at 3.4% in July, down from May’s 4.2% peak but still elevated compared to 2025 levels.
Markets reacted positively to the announcement, with yields retreating after the Treasury’s statement. The policy shift underscores efforts to mitigate volatility in a market sensitive to inflation and geopolitical risks.