Bond yields edge higher as traders digest Treasury debt buyback plan

Bond yields edged higher on Thursday morning after pulling back sharply during the previous session following the Treasury Department's move to dramatically ramp up government debt repurchases in a bid to shore up longer-dated debt.

The yield on 30-year U.S. Treasurys — the primary focus of the accelerated buyback — was up 3 basis points at 5.2256%.

Yields on 10-year U.S. Treasurys — the main benchmark for mortgages, auto loans and credit card debt — moved 1 basis point higher to 4.6723%. The yield on the 2-year Treasury note, which more closely follows short-term Federal Reserve rate decisions, was last seen holding steady at 4.1727%.

One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.

The Treasury Department, led by Scott Bessent, said Wednesday it would double the size of its debt repurchases, mainly at the long-end of the yield curve.

The move sent yields tumbling, with the 30-year yield plunging more than 10 basis points on the day and the 10-year note yield falling more than 6 basis points, reversing this week's earlier advance. Treasury yields have been pushing steeply higher since June, touching levels not seen since before the 2008 Global Financial Crisis.

Global government bond yields also eased.

The historic announcement came as total U.S. government debt hit more than $40 trillion, more than double the level of a decade ago.

Meanwhile, traders were also digesting the latest Federal Open Market Committee minutes from July, released Wednesday. Economic data released since the meeting have shown modest monthly price increases, though inflation remains above the Fed's 2% target.