The U.S. Treasury Department announced Wednesday it would at least double the size of its usual $2 billion debt buyback operation to improve market liquidity. This decision pushed the breakeven rate to 2.34% on the 10-year horizon and the same level on the 5-year, their highest since mid-June. The 10-year Treasury yield stood at 4.73% on Friday, up 3.4 basis points, while the dollar lost nearly 0.9% this week. Inflation concerns arise as U.S. debt surpassed the $40 trillion mark this week and Fed Chairman Kevin Warsh is scheduled to deliver a closely watched keynote at Jackson Hole on August 28.
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