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Dow and S&P 500 rise as long-dated bond yields pull back
The 10-year yield fell 5 basis points to 4.65% and the 30-year yield declined 8 basis points to 5.20% after the Treasury said it would increase buybacks of long-dated debt.
US stocks moved higher on Wednesday as Treasury yields retreated after the US Treasury Department said it will increase buybacks of long-dated government debt, supporting a rally in bond prices. The Dow Jones Industrial Average rose 0.4% and the S&P 500 gained 0.5%, while the tech-heavy Nasdaq Composite edged above the flat line amid continued weakness in chip stocks, according to Yahoo Finance.
The bond market reaction was linked to the Treasury plan to boost buybacks “by at least double” for securities in the 10-year to 30-year segment. After the announcement, the 10-year yield fell 5 basis points to 4.65% and the 30-year yield declined 8 basis points to 5.20%, after both yields had surged earlier in the week.
Yahoo Finance also said President Trump paused tariffs on Canadian goods that were scheduled to take effect at midnight, following 11th-hour talks between Trump officials and Canadian Prime Minister Mark Carney’s team. The report added that while some experts expect limited economic ramifications, the pause is viewed as a signal of renewed negotiations tied to the US-Mexico-Canada Trade Agreement.
Investors are now looking ahead to the Fed’s meeting minutes from the FOMC’s July meeting, due later Tuesday, for clues on policymakers’ discussions about inflation and policy, according to Yahoo Finance.
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