The US Treasury announced on the 9th that it will expand the maximum buyback amount for long-term bonds to $6 billion (approximately 92 billion yen). The bonds targeted are those with maturities of 10 to 20 years, and the first buyback will be conducted on the 10th. The Treasury had indicated a plan to increase the per-operation cap to $4 billion, more than double the current level, but by adding further to the initial plan, it aims to curb interest rates that have been on an upward trend without stopping. However, in the financial markets on the 9th, the yield on 10-year Treasuries temporarily reached the 4.85% range, the highest level in about 2 years and 10 months since November 2023. The yield on 20-year bonds also surged. With views spreading that the buyback scale is insufficient, bond selling progressed due to disappointment.
Treasury buyback expansion insufficient to curb rising yields; 10-year yield hits 4.85% high.
20-year yields surge as buyback scale disappoints, driving bond prices down.
