US Treasury Buyback Falls Short, Long-Term Bond Yields Rise

The US Treasury purchased $5.187 billion in 10- to 20-year Treasury bonds on Thursday, falling short of its $6 billion target. This marks the first time the buyback program has failed to reach its maximum limit since its 2024 relaunch, triggering market sell-offs and pushing 10-year Treasury yields to their highest level since 2023. TD Securities strategist Molly Brooks noted that the Treasury applied stricter screening criteria, suggesting that future full-scale buybacks may require accepting more discounted price offers.