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US Treasury buyback plans lift risk sentiment for stock futures
The Treasury said it will double buyback operations for long-dated Treasuries maturing in 10 to 30 years, a move aimed at easing liquidity concerns and capping long-term borrowing costs.
US stock futures were mixed in European hours as investors weighed cautious sentiment after the latest Federal Reserve meeting minutes and ongoing geopolitical risk, FXStreet reported. Dow Jones futures were down 0.1%, S&P 500 futures slipped 0.1%, while Nasdaq 100 futures were steady around 29,520.
The Fed minutes, from the July FOMC gathering, showed officials leaning toward raising interest rates soon if inflation does not cool, with market pricing already factoring in at least one more hike before year end. MUFG/BTMU’s analysis also pointed to stronger language support for a 25 basis point increase, noting that “several participants” favored a hike.
Sentiment was further influenced by tensions in the Strait of Hormuz, where US and Iran frictions have escalated, keeping risk aversion elevated despite President Donald Trump’s remarks that oil transit remains ongoing and that negotiations are possible. In the background, US Treasury actions to rein in surging yields supported the prior session, helping the Dow and S&P 500 rise 0.2% each and the Nasdaq Composite gain 0.2%.
The Treasury plans to double buyback operations for long-dated securities maturing in 10 to 30 years to cap long-term borrowing costs and ease liquidity concerns, which could eventually put downward pressure on the US dollar. UBS cautioned that bond market commentary may reflect broader political views rather than fundamentals.
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