U.S. Treasury to double sizes of some debt buyback operations to at least $4 billion
TLT•Move follows bond selloff and higher yields
The move was announced a day after a major bond selloff pushed the 30-year Treasury yield US30YT=RR to its highest level since 2007 amid worries of an imminent escalation in the U.S.-Israeli war with Iran and rising concerns over a deteriorating U.S. fiscal picture as total public debt outstanding nears the $40 trillion mark.
Yields rose despite a previously scheduled $2 billion buyback operation of 20-year and 30-year bonds on Tuesday.
The 30-year yields had subsided somewhat on Wednesday from Tuesday's 19-year high of 5.34%, and the Treasury's announcement drove them down further, to as low as 5.187%, marking the largest daily drop in yields since late June.
Treasury doubles longer-dated debt buyback operations
WASHINGTON, Aug. 19 (Reuters) - The U.S. Treasury Department said on Wednesday it would double the size of liquidity support buyback operations for longer-dated nominal coupon securities from $2 billion to at least $4 billion per operation.
