The U.S. Treasury has announced the doubling of its long-term bond buybacks to at least $4 billion per operation, aiming to lower bond yields and support securities prices. This measure seeks to ease borrowing costs as the U.S. federal debt continues to grow. This intervention is influencing market expectations regarding the Federal Reserve’s monetary policy decisions. Markets are now pricing a 73.5% likelihood that the Fed will maintain unchanged interest rates at its next three meetings (June, July, and September), compared to 68% last week.
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