US boosts long-term bond buybacks to push yields lower after Hormuz crisis

MacroDigital Finance Impact 4
โดย Prachachat·US·Read original
Summary · why it matters

The US Treasury announced it will more than double the size of its buybacks of 10-year to 30-year government bonds, from 2 billion dollars to 4 billion dollars per operation, in an effort to pull down yields that had surged because of tensions in the Strait of Hormuz. The program will run from September 9 to November 4, 2026. After the announcement, US stocks recovered, with the Dow Jones and S&P 500 jumping while the Nasdaq was slightly lower. The 30-year bond yield eased to 5.196 percent after touching its highest level since June 2007, while the 10-year yield stood at about 4.647 percent. The move came amid concerns that the Fed could raise interest rates, after minutes from the July 2026 FOMC meeting showed three members supported a quarter-point rate increase. Goldman Sachs, however, said a Fed rate hike in this cycle is highly unlikely and expects rate cuts to be delayed until 2027.

Impact on stocks 4

Financials▲ · 1 stocks
Goldman Sachs Group Inc
GS
▲ PositiveCapitalrelevance

Goldman Sachs expects no Fed rate hike and delayed cuts, aligning with Treasury buybacks to lower yields, supporting its outlook.

Others▼ · 3 stocks
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