US long-term borrowing costs ease after government steps in
· Business · BBC News, Economic Times
The US Treasury Department will double its debt buyback operations from $2 billion to $4 billion to ease rising long-term borrowing costs. This intervention follows a spike in 30-year bond yields, which reached a 20-year high of 5.34% on Tuesday before easing to 5.18%. The Treasury's buyback program is scheduled to run from 9 September to 4 November. Analysts attribute the recent yield surge to inflation concerns, heavy sovereign borrowing, and rising oil prices stemming from the US-Iran conflict. Economists note that while the move aims to provide short-term liquidity, it may not offer a permanent solution to the underlying debt pressure.
Why it matters
Rising US bond yields typically influence global interest rates and borrowing costs for consumers and corporations, making this intervention a critical signal for international financial stability.
Read the original report — BBC News
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