S&P 5007,706.03▼0.8% Nasdaq26,936.04▼0.7% Dow51,511.59▼1.0% Russell 2K2,838.66▼1.3% 10-Yr5.11%+15bp VIX15.18+0.31 WTI$91.79▼3.0% Gold$4,323.20▼1.2% EUR/USD1.138▼0.6% BTC$84,237▼2.2% Nikkei65,771▲1.2%
At close · Thu, Sep 24, 2026
Daily Market Updates.

Bonds & Rates

HomeBonds & RatesGovernment BondsTreasuries outperform swaps as long-end buyback plan g…

Treasuries outperform swaps as long-end buyback plan gains traction

The 30-year spread between Treasuries and equivalent-maturity swaps narrowed to the smallest level since February after the plan was announced.

LiveMint Markets reports that Treasury Secretary Scott Bessent’s plan to expand buybacks of longer-dated bonds has coincided with stronger performance in US Treasuries versus interest-rate swaps. Since Bessent’s announcement last week, Treasuries have outperformed equivalent-maturity swaps, narrowing the 30-year spread to the smallest since February.

Benchmark US yields also drifted lower after early volatility around the government’s intention to at least double its buybacks of longer-dated bonds. LiveMint Markets cites Citi rates strategy head Jason Williams, who said the new Treasury “put” improves the asymmetry for investors holding the long end by providing a potential backstop.

The report also points to additional drivers for the move, including yen intervention and a Monday report from CNBC that the Treasury Department could use the Treasury General Account, the department’s cash parked at the Federal Reserve, to fund increased purchases of long-dated bonds.

In derivatives markets, LiveMint Markets says options positioning has turned more bullish for long-maturity Treasuries, with US bond futures calls running up relative to puts over the past week. By contrast, skew measures for shorter-maturity futures have stayed near neutral levels, reflecting traders’ focus on the long end of the curve.

More like this

Sources

Get the close, explained.

One email every trading day: what moved, why it moved, and what's on deck tomorrow. Read in 3 minutes.

Free. Unsubscribe anytime.