U.S. Treasury Yields Edge Lower Ahead of Buyback Operation
Dow Jones
Sep 10
0548 GMT - U.S. Treasury yields decline in Asian afternoon trade but stay close to recent multiyear highs ahead of the Treasury's first long-end bond buyback operation with increased volume. The Treasury announced Wednesday it would buy a maximum of $6 billion in 10-year notes and 20-year bonds at the upcoming operation. "We are not surprised by the announcement, given long-end buybacks tend to be concentrated in substantially fewer CUSIPs [a number identifying most financial instruments] than elsewhere along the curve, and this should limit Treasury's ability to substantially upsize these operations," J.P. Morgan strategists say in a note. The 10-year yield falls 0.4 basis point to 4.831%, while the 20-year yield is down 0.2 bp at 5.285%, according to Tradeweb.
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