Treasury Boosts Long-Term Debt Buybacks Amid Rising Yields

The US Treasury Department has announced plans to double its buybacks of long-term debt from $2 billion to at least $4 billion in an effort to combat a recent selloff that drove yields to uncomfortable levels.

This move aims to lower the 10-year Treasury yield and ease borrowing costs for the government, but critics warn it could fuel inflation and increase reliance on short-term debt.

The Treasury's strategy involves replacing long-term bonds with short-term bills, which may raise the government's sensitivity to interest rate changes and complicate the Federal Reserve's efforts to control inflation.