Treasury Lifts Buyback Cap to $6B — Why Are Long Yields Rising?
The Treasury announced up to $6bn of buybacks in 10-to-20-year bonds in its first expanded round, above the $4bn floor — and the market still called it thin, taking the 10-year briefly to 4.85%, the 30-year above 5.30%, and QQQ down 0.29%. Bessent repeated that he cannot move the equilibrium price of Treasuries, only dampen volatility, and conceded buybacks are not QE and do nothing about the debt. Bulls see room for more; bears see a buyback dwarfed by the deficit, with oil rising and inflation data due. Wait for the next increase before buying long duration, or trim tech on the yield spike?
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