Investors Underwhelmed at Treasury's Rare Move

Washington is making a rare move to cool borrowing costs—but investors appear to be underwhelmed. The Treasury Department said it will buy back up to $6 billion of longer-term government bonds on Thursday, tripling last month's $2 billion pledge for 10- to 20-year debt. The goal: Shrink the supply of those bonds, nudge their prices higher, and ease yields that help set rates on mortgages, auto loans, and other credit, reports the New York Times. Instead, yields ticked up after the news, with the 10-year climbing to about 4.85% and the 20-year to 5.3%, both the highest since late 2023. The Wall Street Journal reports that "some expected a larger buyback, which could have calmed yields down a bit more."