✓ The Sydney Morning HeraldMoney & Work
US Treasury doubles bond purchases as borrowing costs spike
The Treasury said it will double bond buybacks to $32 billion per quarter starting September 9. This follows 30-year bond yields hitting their highest level since 2007.
With midterm elections less than three months away, the Trump administration is doubling government bond buybacks to try to lower long-term borrowing costs. This week, 30-year bond yields hit their highest level since 2007, pushing mortgage rates back up to about 7%.
The Treasury calls the buybacks 'liquidity support', but they are really an attempt to bring down yields. US public debt has now passed $40 trillion.
Why it mattersHigher mortgage rates make it more expensive for millions of ordinary people to borrow money for homes and other needs.
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