Treasury Buyback Plan Sparks Precious Metals Rally

Hecla Mining and Coeur Mining are among the precious metals miners experiencing a surge in stock prices, rising by 13% each. This follows the Treasury Department's announcement to double its buybacks of long-dated government debt, which has led to lower yields.

The 10-year Treasury yield fell 5 basis points to 4.7%, and the 30-year yield declined 8 basis points to 5.2% in response to this policy change. Lower yields reduce the opportunity cost of holding metals that pay no income, supporting gold and silver prices.

Hecla Mining and Coeur Mining have heavy operating leverage tied to metal prices, meaning a small move in the underlying metal can result in a significant move in their stock prices. This is evident as Hecla Mining's stock price has risen 13% to $20.29, while Coeur Mining's shares are up 13% to $20.83.

However, both stocks remain relatively flat for the year, despite today's surge. First Majestic Silver leads silver peers with an 11% year-to-date gain, but Endeavour Silver has only managed a 3% increase.