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Treasury to expand buybacks of longer-term bonds to curb borrowing costs

The Treasury said it will raise the maximum size of liquidity-support buybacks for longer-dated nominal securities to at least $4 billion per operation, and noted US public debt has surpassed $40 trillion.

Reported · Written up by our desk · Government Bonds

The US Treasury Department said it plans to buy back more longer-term bonds to help curb a sharp rise in borrowing costs, according to FXStreet citing The Wall Street Journal.

Treasury said it will at least double the maximum size of its liquidity-support buyback operations for longer-dated nominal securities, from $2 billion per operation to at least $4 billion per operation.

In its disclosure, the department said total US public debt surpassed $40 trillion for the first time, adding that debt has surged by a third in less than five years.

The announcement coincided with a jump in gold prices, with XAU/USD up 4.17% on the day to $4,515 at the time of writing, as markets continue to focus on safe-haven demand tied to rates and currency expectations.

Latest closeGold $4,157.80 ▲0.4%

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