Treasury Doubles Long-End Buybacks to $4B, Lifting TLT 1.3% Pre-Market
TLT is trading near its 52-week low of $81.17 (2.2% above the low).
Summary
The Treasury will at least double its liquidity-support buybacks for long-dated bonds to $4 billion per operation, effective Sept. 9 through Nov. 4. The announcement immediately pushed the 30-year yield down 7.8 basis points to 5.207% and the 10-year down 4.9 bps to 4.65%. TLT, which closed Tuesday at $81.66 near its lowest since 2004, traded 1.3% higher pre-market. This follows a week of record lows for the ETF and China's reduced Treasury holdings. The buyback targets 10-30 year maturities, aiming to improve liquidity in the most stressed part of the curve, though it does not address the underlying supply and deficit pressures.
At the time of this announcement, TLT was trading at $82.99 on NASDAQ in the Finance sector. The 52-week trading range was $81.17 to $92.19. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.