The U.S. Treasury's $6 billion long-bond buyback concluded on Thursday, with the scale below expectations. The 10-year U.S. Treasury yield briefly rose to 4.94%, a new high since October 2023.
On Thursday, September 10, Eastern Time, the U.S. Treasury confirmed that the maximum size of its long-term bond buyback operation for the day was $6 billion. Although this amount was three times larger than the previous cap, it still fell short of the $7 billion to $10 billion anticipated by some Wall Street institutions. The market reaction was subdued, and the sell-off in U.S. Treasuries continued. The benchmark 10-year U.S. Treasury yield briefly tested 4.94% during U.S. stock trading, reaching a new high since October 2023 and further approaching the 5% mark. Bloomberg noted that $6 billion remains limited for the approximately $32 trillion U.S. Treasury market, failing to deliver the "shock" effect investors had hoped for. Rising oil prices and inflation concerns further exacerbated the selling pressure on U.S. Treasuries.
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