The US Treasury announced on August 19 that it would double the cap on its buyback operations for 10-year to 30-year debt, increasing from $2 billion to at least $4 billion per operation, effective September 9. The announcement caused 30-year Treasury yields to drop roughly 8 basis points from 5.26% to around 5.18%. Peter Tchir, head of macro strategy at Academy Securities, described the move as « kind of mediocre » and urged the Federal Reserve to definitively remove rate hikes from the table and start discussing cuts. He argues that the growing interest burden on government debt, with 30-year yields at levels not seen since 2007, cannot be addressed by Treasury buybacks alone.
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