Treasury Intervention Pushes Bond Yields Lower as Stocks Rise
The U.S. Treasury Department announced an expansion of its long-dated government bond buyback program, aiming to ease pressure on Treasury yields after a volatile start to the week.
The move followed a surge in the 30-year Treasury yield above 5.3%, its highest level since 2007, as investors worried about fiscal deficits, inflation and major borrowing needs tied to artificial intelligence investment.
As a result of the buyback program expansion, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 also gained 0.6%. The Nasdaq Composite advanced 0.4%, although technology shares remained relatively weak after a sharp semiconductor-led selloff in the prior session.
Gold prices advanced on August 19, supported by a softer U.S. dollar and investor caution over the interest-rate outlook. Spot gold traded near $4,367.50 per ounce in early U.S. dealings, up 0.79% on the day.