An alarmed bond market gets the Trump administration to act again
· World · Hindustan Times, The Independent
The U.S. Treasury announced Wednesday that it will more than double the amount of government bonds it buys back, a move that has already lowered longer‑term yields. The 10‑year Treasury yield peaked at 4.70% before settling at 4.65%, up from 3.97% before the war with Iran. The 30‑year yield surged above 5%, returning to 2007 levels, while Japan’s 10‑year yield hit a near‑30‑year high and Germany’s 10‑year slid back to 2011 levels. Rising yields are being driven by higher oil prices linked to the Iran conflict, growing government debt concerns and global market volatility. The Treasury action has worked to calm the market for now, though analysts warn it could backfire. Mortgage rates in the U.S. are near their highest annual level as a result of the yield rise.
Why it matters
Higher U.S. bond yields increase borrowing costs for households and businesses, raise mortgage rates, and can pressure global equity markets, indirectly affecting Indian import costs and inflation.
Read the original report — Hindustan Times
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