U.S. Treasury bond yields climbed on Thursday after the government pledged to expand its buyback program for longer-dated debt, a move aimed at stabilizing a recent selloff in the bond market. The 30-year U.S. government bond yield increased 5.4 basis points to 5.247%, following a prior drop to 5.1765%. The 10-year benchmark yield rose 4.7 basis points to 4.7%, after easing 5 basis points the previous day.
The Treasury’s announcement came as global stocks showed tentative signs of stabilization, with the MSCI global index up 0.3% following four consecutive daily losses—the longest streak since March. The S&P 500 fell 0.9%, while the Nasdaq declined 1%. European equities, as measured by the STOXX 600, slipped 0.12%.
The Federal Reserve’s latest meeting minutes, released on Wednesday, highlighted growing concerns over inflation. Several policymakers indicated readiness to raise interest rates, while many stated that a hike would be necessary if inflation fails to ease toward the central bank’s 2% target.
Brent crude futures advanced 2% to $93.49 a barrel amid persistent disruptions in the Strait of Hormuz. U.S. distillate fuel stockpiles, which include diesel and heating oil, have declined for three consecutive weeks, while crude and gasoline inventories rose in the prior reporting period.
In currency markets, the dollar index against six major peers was up 0.06% at 98.89. The euro held flat after earlier gains of 0.16% to $1.1695, its highest level since May. The yen weakened 0.6% to 159.12.
Analysts noted that the Treasury’s buyback initiative provided only temporary relief. Lawrence Gillum, chief fixed-income strategist at LPL Financial, described the move as "more of a band-aid than a panacea," adding that it signals the department’s intent to prevent yields from rising too sharply. Meanwhile, concerns over energy inventories persisted, with Tom Samuelson of Vineyard Global Advisors warning of potential supply constraints.
Marta Norton, chief investment strategist at Empower, emphasized that short-term fluctuations in the yield curve should not overshadow the long-term growth narrative in sectors such as artificial intelligence.
