Treasury Doubles Debt Buyback Amid Inflation Fears

The US Treasury Department has announced that it will double its debt buyback to stabilize the bond market, which has been affected by inflation fears. The decision comes as officials at the Federal Reserve remain divided on how to deal with high inflation.

The yield rate on 10-year, 20-year, and 30-year Treasury notes hit 20-year highs this week, with the 30-year Treasury yield rising to its highest rate since 2007. This rapid increase has raised concerns for borrowers as major loans, including mortgages, are backed by Treasuries.

The Treasury Department's announcement on Wednesday morning led to a drop in yields, indicating that the policy 'reflects Treasury's desire to provide greater liquidity support' to the long-term bond market.