Arabic version: ارتفاع عوائد سندات الخزانة بعد إعلان إعادة شراء الديون

According to Cnbc, Treasury yields edged higher on Thursday morning after pulling back sharply in the previous session following the Treasury Department’s plan to dramatically increase government debt repurchases. The purchases are intended to support longer-dated debt, with the 30-year Treasury the primary focus of the accelerated buyback.

The 30-year U.S. Treasury yield rose 3 basis points to 5.2256%. The 10-year Treasury yield, a key benchmark for mortgages, auto loans and credit card debt, increased 1 basis point to 4.6723%. The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve rate decisions, was steady at 4.1727%.

One basis point equals 0.01%, or one-hundredth of a percentage point. Treasury yields and prices move in opposite directions. The Treasury Department, led by Scott Bessent, said Wednesday that it would double the size of its debt repurchases, mainly at the long end of the yield curve.

The announcement sent yields sharply lower on Wednesday. The 30-year yield fell by more than 10 basis points during the session, while the 10-year note yield declined by more than 6 basis points, reversing an earlier rise for the week. Treasury yields have climbed steeply since June and reached levels not seen since before the 2008 Global Financial Crisis. Global government bond yields also eased.

The debt-buyback decision came as total U.S. government debt exceeded $40 trillion, more than twice its level a decade earlier. Traders were also assessing July Federal Open Market Committee minutes released Wednesday. Data published since that meeting showed modest monthly price increases, while inflation remained above the Federal Reserve’s 2% target.