US Treasury Department steps in amid bond rout: quick fix or long-term solution?

With elevated US Treasury yields fuelling concerns about Washington’s fiscal sustainability, the country’s Treasury Department stepped in on Wednesday, announcing plans to at least double the size of some long-end bond buy-backs. As markets weigh whether this move could turn the tide, we look at how the buy-backs work, how durable they could be in reining in yields and what they could mean for global asset allocation. What is the US Treasury Department doing – and is it unusual? The department..