Yield on Long-Dated Treasuries Declines as Market Awaits Jackson Hole Summit

Yields on long-dated U.S. Treasuries declined marginally on Monday morning, trading between 2.5 and 3 basis points lower as of this writing.

The move came after a volatile week, with the Treasury Department announcing that it will at least double the size of liquidity-support buyback operations for longer-dated nominal-coupon securities.

Despite initial gains following the announcement, yields pared back most of their increases and ended higher.

With the Jackson Hole Summit upcoming, bond traders are eagerly awaiting Federal Reserve Chair Kevin Warsh's debut keynote address on Friday. Mohamed El-Erian noted that all eyes will be focused on how far the Chair goes in summarizing his 'reaction function' and what he signals about both short- and longer-term reforms to Fed operations.

The iShares 20+ Year Treasury Bond ETF (TLT) was among the top trending tickers on Stocktwits, down by over 5% this year while the iShares 7-10 Year Treasury Bond ETF (IEF) is down over 3%.