Yield Decline Intensifies as Treasury Increases Buybacks

Paulo Trevisani, Dow Jones Newswires

An overnight decline in yields accentuates as the U.S. Treasury says it will at least double the size of buyback operations for longer-dated bonds.

"The current maximum size of $2 billion per operation will be at least $4 billion per operation," the department says in a statement. The announcement follows a sharp selloff in long-term bonds that increased the government borrowing costs. The new buyback target takes effect September 9 through November 4, the Treasury says.

The 10-year yield slides to 4.651% from 4.682% before the repurchase news. The 30-year yield falls to 5.202% from 5.266%.