US Treasury doubles debt buyback to stabilize bond market; yields drop

Published Aug 19, 02:57 PM UTC

The US Treasury announced it is doubling its buyback of government debt to stabilize the bond market as yields on 10-year, 20-year, and 30-year Treasury notes hit 20-year highs, driven by investor concerns over persistent inflation and geopolitical tensions. The move follows the Trump administration's joint intervention with Japan to support the yen. Yields dropped after the announcement. The bond market turmoil is linked to the expiration of a US-Iran ceasefire and fading hopes for peace, which have kept oil prices elevated. US inflation stood at 3.4% in July, down from a May peak but still above the Fed's 2% target. The stock market, buoyed by AI investment, remains volatile. Fed Chair Kevin Warsh has been skeptical of further intervention, and the central bank is divided on how to respond to rising prices amid White House pressure to lower rates.