Long-term U.S. Treasury yields fell Wednesday after the Treasury Department announced it would at least double its debt buyback operations, increasing purchases of long-dated bonds from $2 billion to a minimum of $4 billion per operation beginning September 9.
The 30-year Treasury yield dropped 10 basis points to 5.19%, while the 10-year yield fell 5 basis points to 4.65%. The move could provide modest relief for mortgage rates and signal that Treasury Secretary Scott Bessent is prepared to intervene if pressure builds in the long-term bond market.
The announcement also boosted gold and mining stocks as the dollar weakened. Gold futures jumped 2.8% to $4,546 an ounce, while the VanEck Gold Miners ETF rose more than 9%, according to Investors Business Daily. The reaction highlights growing investor interest in gold amid concerns about U.S. debt, monetary policy, and potential dollar weakness.
