On the 9th, the US Treasury announced that the initial expansion of its long-term bond buyback operation would be up to $6 billion. This is three times the $2 billion initially indicated to investors, but bond market strategists had anticipated it could reach $10 billion to $12 billion, so it fell short of expectations, and the cap of "up to" also caused disappointment. Following the announcement, the 10-year Treasury yield rose to 4.8528%, a high not seen since 2023. The 2-year yield also reached a two-year high since 2024. Market participants criticized that this buyback program does not fundamentally solve the US fiscal situation and is merely a temporary measure, with some suggesting that the scale is too large to have an impact. The buybacks will continue until November 4th, and it remains to be seen whether the Treasury market will show resistance to the Treasury's intervention.
Treasury buyback expansion smaller than expected, causing 10-year yield to rise to 4.8528%.
Treasury buyback expansion smaller than expected, causing 2-year yield to reach two-year high.
