US treasury to buy back $6bn in government debt to alleviate bond market

AI desk brief

The Treasury’s $6bn buyback plan has not stopped the sell-off in long-dated US debt: the 30-year yield is around 5.2%, the highest since the 2008 crisis, and yields kept rising even after the announcement. The article frames the move as an attempt to stabilize bonds and ease pressure on financing conditions, but higher yields are reinforcing expectations that the Fed may need to stay tighter for longer.

That backdrop is mixed for precious metals. On one hand, rising inflation driven by the war in Iran and Brent crude moving above $100/bbl are supportive for safe-haven demand; on the other, higher real/risk-free rates are a direct headwind for gold and silver if they persist.