FTSE 100 Rises as US Treasury Boosts Bond Buybacks
· Business · The Independent, Financial Times, Hindustan Times
The FTSE 100 closed 0.1% higher at 10,743.35 on Wednesday after the US Treasury announced plans to at least double its bond buyback operations. This intervention aims to provide liquidity support for longer-dated bonds, specifically targeting the 10-year to 30-year sectors. The move followed a surge in 30-year US Treasury yields to a 19-year peak on Tuesday. Consequently, US 10-year and 30-year yields narrowed, while UK gilt yields also declined. Additionally, Moderna and Merck shares surged on Wall Street following positive results from an experimental melanoma vaccine trial.
Why it matters
The US Treasury's increased liquidity support helps stabilize global bond markets, which have been pressured by rising yields, potentially easing borrowing costs for governments and corporations.
Read the original report — The Independent
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