Oil rises, while Treasury’s up to $6 bln long-dated buyback weighs
Oil price gains pressured stocks and bonds; losses widened after the Treasury said it plans to buy up to $6 billion in longer-dated government paper.
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Oil price gains pressured stocks and bonds; losses widened after the Treasury said it plans to buy up to $6 billion in longer-dated government paper.
US Treasury plans to buy up to $6 billion of longer-dated government bonds in the first operation under its expanded buyback programme, after earlier plans for around $2 billion.
The Treasury Department said it will buy up to $6 billion in 10- to 20-year Treasury bonds during its buyback operation on Thursday, triple the size of its last long-dated operation.
Peter Schiff said a structural bond-market bear market could push the 10-year Treasury yield toward 8%, which he said would imply mortgage rates above 10%.
The Treasury Department doubles its long-dated bond buyback operations from $2 billion to $4 billion per operation, while the 30-year yield briefly fell to 5.19% before rising to 5.27%.
Mohamed El-Erian says the U.S. Treasury’s move to at least double liquidity-support buybacks for long-dated bonds is a short-term “Band-Aid,” while Treasury says the change runs Sept. 9 through Nov. 4.
Circle Internet Group Inc. (NYSE: CRCL) shares climb in Wednesday trading alongside bitcoin and other crypto-linked names as Treasury yields slide and traders look ahead to President Donald Trump’s planned White House meeting with crypto executives.
The US Treasury says it will increase liquidity support buyback operations for longer-dated nominal coupon securities from a maximum of $2 billion per operation to at least $4 billion, effective September 9 through November 4, 2026.
The U.S. sold $25 billion of new 30-year bonds at 5.216%, the highest financing cost for that tenor since 2001, while iShares 20+ Year Treasury Bond ETF TLT traded at $81.90, its lowest since June 2004.