Treasury’s Surprise Buybacks Temper Yield Spike as Markets Reprice Debt and FX
The U.S. Treasury unexpectedly doubled its planned bond buybacks in the two months leading to the midterm elections, shoring up long-dated yields that had surged to multi-decade highs. While the move calmed the government debt market and helped a 20-year auction clear, it does not reduce the total stock of debt and may lead to greater reliance on s…
