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Bond yields edge higher as traders digest Treasury debt buyback plan
CNBC • • general
Key Points:
- Bond yields rose slightly on Thursday morning after a sharp decline the previous day, following the Treasury Department's announcement to significantly increase government debt repurchases aimed at supporting longer-term debt.
- The 30-year U.S. Treasury yield increased by 3 basis points to 5.2256%, while the 10-year yield rose 1 basis point to 4.6723%; the 2-year yield remained steady at 4.1727%.
- The Treasury's decision to double debt buybacks, particularly targeting long-term bonds, caused yields to drop sharply on Wednesday, reversing earlier weekly increases that had pushed yields to levels not seen since before the 2008 financial crisis.
- This move coincides with U.S. government debt surpassing $40 trillion, more than double the amount from a decade ago, and comes amid ongoing inflation concerns as highlighted in recent Federal Reserve meeting minutes.
