WASHINGTON (dpa-AFX) - After recovering from early weakness to end the previous session modestly higher, treasuries showed a more significant move to the upside during trading on Wednesday.
Bond prices surged early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 5.3 basis points to 4.653 percent.
The advance by treasuries came after the Treasury Department announced upscaled buyback operations for longer-term debt.
The Treasury said it is increasing the size of liquidity support buyback operations for longer-dated nominal coupon securities by at least double, effective September 9th.
'This increase in buyback operation sizes reflects Treasury's desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants,' the Treasury said in a statement.
Treasuries saw continued strength in afternoon trading even after the minutes of the Federal Reserve's latest monetary policy revealed many officials believe an increase in interest rates would likely be necessary unless inflation declines.
The Fed said some participants also commented that financial conditions might not currently be sufficiently restrictive to facilitate a return of inflation to the 2 percent target.
At the same time, the minutes highlighted high uncertainty about the outlook for inflation due to in part to the recent re-escalation of the conflict in the Middle East.
'[Many] participants remarked that a protracted conflict could prolong supply chain challenges and could put upward pressures on inflation,' the Fed said.
Fed officials voted 9-3 to leave interest rates unchanged at the July 28-29 meeting, with Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan preferring to raise rates by a quarter point.
The Fed said the participants who favored raising rates judged that doing so would likely help forestall the need for a steeper and potentially more costly sequence of tightening moves at a later stage.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
