Bonds & Stocks
Wall Street staged a rebound after the Treasury said it plans to boost buybacks of longer-dated bonds, a signal the US wants to lower borrowing costs after yields hit multi-decade highs. The S&P 500 rose 0.4%. The yield on 10-year Treasuries declined six basis points to 4.65%.
Economy
The US Treasury unexpectedly announced it’s ramping up buybacks of long-dated government debt, taking the action in the wake of yields on such securities hitting the highest levels in years. Just two weeks after releasing its planned schedule for buybacks this quarter, the Treasury Department on Wednesday said it’s “increasing, by at least double, the size of liquidity support buyback operations” for securities dated from the 10-year to the 30-year sector.
World
The United Arab Emirates has cut all economic ties with Tehran after accusing Iran of firing ballistic missiles at its territory, ramping up regional tensions.