The Treasury doubled its buyback cap to $4 billion per operation on August 19, but the 30-year yield rebounded within a day, erasing almost the entire initial 10-basis-point drop. Total US public debt crossed the psychological threshold of $40 trillion, pushing the 30-year yield to its highest level since 2007. Analysts describe the expanded buyback program as largely symbolic given the scale of the Treasury market and thin liquidity conditions. This intervention was explicitly framed as a liquidity-support measure rather than a broad policy tool to address fiscal pressures. For the real economy, elevated yields translate into higher borrowing costs for mortgages, corporate debt, and municipal infrastructure projects.
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