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Bond market rejects Treasury plan to cut borrowing costs
The 10-year yield rose to its highest level in three years after investors appeared underwhelmed by details of a proposed $6 billion bond buyback.
The bond market pushed back on a Treasury plan aimed at reducing borrowing costs, after investors reacted skeptically to the proposal to buy back government bonds, according to The New York Times.
Following the announcement, the 10-year yield rose to its highest level in three years, signaling that demand for Treasuries may not be rising as the plan intended.
The Times said the yield increase suggests investors were underwhelmed by the specifics of the move, even though the plan was designed to lower borrowing costs.
The proposal centers on $6 billion in buybacks, with the market response indicating that details mattered for whether investors viewed the effort as compelling.