The Dow Jones Industrial Average rose on Wednesday as bond yields fell following the Treasury Department’s announcement of an increased buyback operation for longer-term debt.
The 30-stock Dow added 306 points, or 0.6%. The S&P 500 traded up 0.5%, while the Nasdaq Composite gained 0.2%.
Yields on the long end of the Treasury curve sank after the Treasury Department said it’s going to at least double the size of its government debt repurchases. The increased buyback is aimed at the 10- to 30-year parts of the market.
That’ll include the 20-year.
The 30-year Treasury bond yield — which notched a new 19-year high of above 5.33% in the prior trading day — declined more than 9 basis points to 5.187%. The 10-year Treasury note yield shed more than 6 basis points to 4.645%.
Yields on the long end of the Treasury curve sank after the Treasury Department said it’s going to at least double the size of its government debt repurchases. The increased buyback is aimed at the 10- to 30-year parts of the market.
"The Treasury’s move to double long‑end buybacks from $2 billion to $4 billion was purely a liquidity‑management adjustment for outstanding 30‑year bonds. Yet, markets treated it as a broader easing signal, with yields falling 10 basis points and semis/tech rallying sharply," said Ben Emons, founder of FedWatch Advisors.
Liên Minh Bảo Hiến Mỹ Gốc Việt
Vietnamese American Conservative Alliance (VACA)
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