The U.S. Treasury will double the size of its buyback operations for 10- to 30-year Treasury debt securities to at least $4 billion per operation, a move aimed at curbing a recent bond selloff that has pushed U.S. yields higher.
The announcement follows two interventions by U.S. Treasury Secretary Scott Bessent in August, including a joint currency-market action with Japan on August 1 to stabilize the yen. The Treasury’s expanded buyback program signals growing discomfort with current yield levels as U.S. national debt surpasses $40 trillion for the first time.
In Asia, the intervention helped steady Treasury yields, while Japanese government bond yields fell. The moves underscore broader concerns over market volatility amid rising debt levels and shifting monetary policy expectations.
Elsewhere, labor market data from Australia showed an unexpected decline in employment in July, pushing the jobless rate to its highest level since late 2021. Markets now view a potential rate cut by the Reserve Bank of Australia by year-end as a near-even proposition.
Sweden’s Riksbank is expected to hold its policy rate at 1.75% at its upcoming meeting, with analysts citing mild inflation supported by a fossil-fuel-free energy system as a key factor in the decision.
