Good Reads
The Treasury’s rare intervention buys time, not a solution
While the increase in buybacks is modest relative to the USD 32 trillion Treasury market, it still prompted a notable reaction: 30-year Treasury yields fell nearly 10 basis points, the US dollar weakened against every major G10 currency (DXY -0.8%), gold prices rallied more than 4%, and equities moved higher. The Treasury's actions may have helped cap the surge in yields this week, but we think investors should avoid overinterpreting the longer-term implications: Read on »
Bessent says Treasury buyback operation could be more than $4 billion
In a live interview, Bessent said his department is going “make a market” in the longer-dated securities where yields have been surging lately. Treasury announced Wednesday that it would be doubling its scheduled $2 billion in buybacks of longer-dated government debt, sending yields sharply lower. “We’re going to increase the size of the buyback,” he said. “I would note that it could be more than the 4 billion per issue.” Read on »
Trump administration to back US minerals projects with $500 million in grants
The U.S. Department of Energy is awarding $500 million in grants to seven companies building domestic lithium, cobalt and other mineral and battery projects, the latest in a string of investments aimed at bolstering American mining and processing, according to a document seen by Reuters. Read on »
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