Bessent's Surprise Bond Buyback Sparks Market Volatility

US Treasury Secretary Bessent's surprise decision to double the amount of planned bond buybacks has sent shockwaves through markets. The move, announced on Wednesday, led to a sharp decline in long-dated US bond yields and the dollar.

The yield curve also flattened as a result of the announcement, with 10-year yields falling by 10 basis points - the largest drop since October 2025. The dollar tumbled against major currencies, with the USD/CHF pair experiencing its biggest fall since January.

Gold and Bitcoin rose sharply in response to the market volatility, with gold reaching an 11-week high of $4,500 per ounce. Meanwhile, US stocks climbed higher, with the S&P 500 indices rising by 0.2%.