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Wheaton Precious Metals jumps after Treasury boosts bond repurchases
The stock gained more than 11% after the Treasury said it would raise long-term bond repurchases to at least $4 billion per operation from $2 billion.
Wheaton Precious Metals (NYSE: WPM) surged more than 11% in Wednesday trading as precious metals prices rebounded, with the rally driven by moves in U.S. fixed income, according to Yahoo Finance.
The outlet tied the jump to the U.S. Treasury Department announcing it will at least double its long-term bond repurchases to $4 billion or more per operation from the current $2 billion.
Because higher bond prices typically coincide with lower yields, the announcement helped pull yields down, which in turn can lift demand for assets seen as benefiting from easier financial conditions, including non-yielding instruments such as precious metals.
Yahoo Finance also noted that gold, silver, and related assets had been slumping since they hit all-time highs earlier this year, and said the sharp, news-driven nature of the rebound makes it uncertain how long it will last.
Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%