10-year Treasury yields hit multiyear high after buyback increase

The yield on the 10-year U.S. Treasury climbed to its highest level in three years on Wednesday after the Treasury Department revealed plans to increase the scale of its debt buyback program. The announcement to triple the amount of government debt eligible for repurchase came as the benchmark yield rose above recent levels. Market quotes showed the 10-year yield gained more than two basis points to top 4.83 percent during the session. Earlier in the day the yield reached readings above 4.85 percent before settling slightly lower. Treasury officials’ decision to expand buyback capacity represented the policy move that coincided with the intraday rise in the benchmark yield. Traders and analysts tracked the development closely as it unfolded on Wednesday, with the yield movement occurring alongside the department’s new guidance. The sequence of the Treasury’s announcement and the subsequent uptick in the 10-year rate marked a notable moment for government debt markets, as investors absorbed the implications of a larger repurchase program at the same time yields moved to multiyear highs.