US Treasury buyback announcement disappoints, yields stay elevated

TREE NEWS update: The US Treasury said it will purchase at least $4 billion and up to $6 billion of long-term debt in the first operation of its expanded buyback program, signaling Bessent’s resolve to curb rising borrowing costs. Treasury prices extended declines after the announcement, as the size fell short of some investor expectations. The benchmark 10-year yield last week hit its highest since 2023, and the program’s success remains uncertain.