Treasury doubles its long-bond buybacks after yields hit a 19-year high
Treasury said Wednesday it will at least double the maximum size of its liquidity support buybacks in longer-dated nominal coupons, from $2 billion per operation to at least $4 billion, covering the 10-to-20 year and 20-to-30 year sectors. The change takes effect September 9 and runs through November 4. It came a day after the 30-year yield touched 5.337%, its highest since 2007, and long bonds rallied on the announcement with the 30-year falling about 9 basis points to 5.196%. The long end of the curve is the price of money for mortgages, equipment loans and equity valuations, and Washington just signaled it is willing to lean on it.