Home›Bonds & Rates›Government Bonds›Global bond yields fall after Treasury boosts longer-d…

Global bond yields fall after Treasury boosts longer-dated support

The U.S. Treasury will double the size of its longer-dated nominal coupon buyback operations to at least $4 billion from $2 billion, easing pressure after a broad selloff.

Wednesday, August 19, 2026 · Written up by our desk · Government Bonds

Global bond yields retreated from multi-decade highs after the U.S. Treasury Department said it will increase liquidity support for longer-dated securities following a broad selloff tied to worries about rising sovereign debt, according to Reuters. The Treasury said it will double the size of its liquidity support buyback operations for longer-dated nominal coupon securities to at least $4 billion per operation, up from $2 billion. In the wake of the announcement, U.S. long-dated government yields fell by as much as 10 basis points, pulling down European government bond yields as well.

U.S. long bonds had hit their highest level in nearly 20 years on Tuesday, at nearly 5.34%, reflecting growing concern about inflation and high debt. The report noted that long-end sovereign yields can act as an anchor for prices across financial markets, including mortgage rates.

The selloff had also been part of a wider repricing of global debt risk as investors fret over ballooning government debt and high inflation, with oil futures gaining around 0.2% as the prospect receded of a deal to end the conflict in the Middle East. In early trading, the S&P 500 and Nasdaq were both up 0.4%, while European stocks were broadly flat.

Latest closeS&P 500 7,785.76 ▼0.2%|Nasdaq Comp. 26,729.16 ▼0.3%

More like this

Sources