Treasury Buyback Plan Boosts Silver Amid Softer Rate Path

The US Treasury's plan to increase liquidity support buyback operations has sent shockwaves through the markets, causing Silver (XAG/USD) to surge to near $65.80 on Wednesday.

The move aims to rein in the recent surge in long-end yields, which had been causing concern among policymakers.

However, the plan did little to shift market sentiment, with traders treating the FOMC Minutes as backward-looking and focusing on the softer rate path indicated by the markets.

The Minutes showed that while some Fed officials still regard inflation as elevated, the labor market stable, and the economy expanding, the debate captured in the record predates more recent data and has been largely discounted by the markets.