[New York Stocks] Treasury to Expand Long-Term Bond Buybacks... Nasdaq Slightly Lower

30-Year U.S. Treasury Yield Drops 10bp
International Oil Prices Edge Higher
Mixed Performance Among Major Market Cap Stocks

On the 19th (local time), the three major U.S. stock indices on the New York Stock Exchange showed mixed trends. This comes as the yield on the 30-year U.S. Treasury soared to its highest level in 19 years, prompting the U.S. Department of the Treasury to announce it would at least double its long-term bond buybacks.

As of 9:57 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was trading at 53,601.40, up 258.00 points (0.48%) from the previous session. The S&P 500 index, which tracks large-cap stocks, rose 28.21 points (0.39%) to 7,719.97, while the tech-heavy Nasdaq index added 9.54 points (0.02%) to 26,280.16.

New York Stock Exchange. New York, USA – Photo by Yoonju Hwang

The market appears to be seeing a revival in investor sentiment following the news that the U.S. Treasury will at least double the scale of its bond buybacks. The Treasury announced in a statement, "To provide greater liquidity for a range of long-term bonds from 10-year to 30-year maturities, we will increase the purchase of long-term bonds."

This measure was introduced immediately after 30-year Treasury yields recently hit their highest point in 19 years. According to Bloomberg, shortly after the announcement, the yield on the 30-year U.S. Treasury plunged approximately 10 basis points (1bp = 0.01 percentage points) to 5.185%.

U.S. Treasury Secretary Scott Bessent previously mentioned the Treasury's buyback program as one of its "major policy tools" to address any potential problems in market functioning within the Treasury market. Since taking office, he has repeatedly identified the 10-year Treasury yield as the most important indicator in the financial markets.

Ben Emons, founder of FedWatch Advisors, commented, "While the Treasury's move to double long-term bond purchases from $2 billion to $4 billion was merely an adjustment for liquidity management in the 30-year bond market, the market interpreted it as a broader signal of easing." He added, "It shows how rate volatility is closely linked not only to traditional quantitative easing interpretations but also to the influence of artificial intelligence and technology conglomerates."

Stocks with high market capitalization are showing mixed performance. Nvidia is down 0.66%, TSMC is down 0.71%, Alphabet is down 0.58%, Broadcom is down 4.89%, and SpaceX is down 3.93%. In contrast, Apple is up 2.28%, Microsoft is up 0.37%, Amazon is up 0.29%, and Tesla is up 0.43%.

International oil prices are trending slightly higher. On the New York Mercantile Exchange, September delivery for West Texas Intermediate (WTI) crude is up 0.62% from the previous session to $85.48 per barrel. On the ICE Futures Exchange, October delivery for Brent crude is up 0.52% from the previous session to $91.51 per barrel.

This content was produced with the assistance of AI translation services.