The Treasury Buyback Experiment: Can the U.S. Government Really Lower Borrowing Costs? 

The Treasury Buyback Experiment: Can the U.S. Government Really Lower Borrowing Costs? 

ByMarketFacts

Introduction The U.S. Treasury has taken an unusual step to address rising long-term borrowing costs: buying back outstanding Treasury bonds.  The move comes as long-term yields have risen sharply, with the 30-year Treasury yield recently reaching levels not seen since 2007. On August 19, the Treasury announced that it would double the size of certain…

Bond Yields Above 5%: Is the U.S. Market Entering a New Risk Regime?

Bond Yields Above 5%: Is the U.S. Market Entering a New Risk Regime?

ByMarketFacts

The rise in U.S. long-term bond yields above the 5% threshold marks a significant shift in the global financial landscape. For much of the past decade, markets operated in an environment defined by low interest rates and abundant liquidity. That regime supported higher equity valuations, cheap capital, and strong risk appetite. The recent move higher in yields suggests that this backdrop may be changing more structurally than previously assumed.