The U.S. Treasury Department unexpectedly announced Wednesday that it would at least double government debt buybacks, expected to take effect Sept. 9.
- The U.S. 30-year Treasury yield fell to 5.186% at the time of writing, while the U.S. 10-year Treasury yield was at 4.639%, dropping significantly from the previous session.
- Meanwhile, U.S. President Donald Trump said in a post on Truth Social that he was imposing an unprecedented economic and financial campaign against Iran, warning countries and entities that provide Tehran with financial, commercial or logistical support that they would face severe consequences.
- The Federal Reserve’s July meeting minutes released on Wednesday showed growing concern over inflation.
U.S. stock futures edged higher in the overnight session late Wednesday as U.S. Treasury yields cooled off after the Treasury Department said it would at least double the size of its government debt repurchases.
The U.S. 30-year Treasury yield fell to 5.186% at the time of writing, while the U.S. 10-year Treasury yield was at 4.639%, dropping significantly from the previous session.
Dow futures climbed 0.01%, while the S&P 500 futures and Nasdaq-100 futures were also up 0.10% and 0.38% at 10:24 PM EDT.
On Tuesday, all three benchmark indexes closed higher, snapping a three-day losing streak.
The Dow Jones Industrial Average led the climb, adding 0.22% at close. Meanwhile, the S&P 500 and the Nasdaq Composite also ended the session up 0.21% and 0.16%, respectively.
| Index | Move | Close |
| Dow Jones Industrial Average | 0.22% | 53,463.05 |
| S&P 500 | 0.21% | 7,707.98 |
| Nasdaq Composite | 0.16% | 26,331.09 |
Key US Market Drivers
The U.S. Treasury Department on Wednesday unexpectedly announced it would at least double government debt buybacks, expected to go into effect Sept. 9, as bond yields have been climbing in recent weeks.
The move marks a sharp change from the tentative buyback schedule announced just two weeks earlier. The department also revealed that U.S. public debt has surpassed $40 trillion.
“What we’ve seen in the course of recent days is that the long end of the bond market has obviously been selling off and potentially becoming somewhat problematic for the play through to other asset classes,” Jeremy Stretch, head of G10 FX Strategy at CIBC, reportedly told Reuters.
“This measure shows the U.S. Treasury recognizes what is going on the bond market and is prepared to adjust policy in order to limit pressures on the market,” he added.
The U.S. 30-year Treasury yield climbed to a fresh 19-year high on Tuesday, while the 10-year Treasury yield was also near multi-year highs.
Mohamed El-Erian, Chief Economic Advisor at Allianz, said in a post on X, “The bond market reacted to news of increased Treasury buybacks by pushing longer-term yields down across the board. Beyond the immediate reaction, this move is less about the buyback itself, which is small in both absolute terms and relative to net issuance, than about the possibility of a broader deployment of ‘yield curve control’ (YCC).”
Meanwhile, geopolitical tensions continue to teeter on the edge as the U.S. and Iran have still failed to make a deal. U.S. President Donald Trump said in a post on Truth Social that he was imposing an unprecedented economic and financial campaign against Iran, warning countries and entities that provide Tehran with financial, commercial or logistical support that they would face severe consequences.
“No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me. TRAGICALLY, for them, they have failed to take it. Therefore, today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY! This will be Economic Warfare and Isolation on an unprecedented scale,” he said.
“Today, I am also announcing that ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences. Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies — It all needs to stop NOW,” he added.
Global oil prices continued to climb higher on Wednesday. Brent crude futures expiring in October were up about 0.57%, trading at $92.14 a barrel at the time of writing. Meanwhile, WTI crude futures expiring in September were trading at $86.12 per barrel, up about 0.34%.
Meanwhile, the Federal Reserve’s July meeting minutes released on Wednesday showed growing concern over inflation, with several policymakers favoring a rate hike and many saying further tightening could be warranted if inflation fails to return to the 2% target. They warned that delaying action could require steeper, more costly rate increases later.
Trending Stocks To Watch
Moderna Inc. (MRNA): The drugmaker’s stock was on the retail radar after its shares closed up more than 176% higher after it announced that its personalized mRNA cancer vaccine developed with Merck significantly reduced melanoma recurrence and spread in a late-stage trial.
Novavax Inc. (NVAX): Shares of the company rallied nearly 11% at close and continued to climb higher, riding the wave following Merck and Moderna’s positive late-stage trial results for their personalized mRNA cancer treatment.
Strategy (MSTR): Shares of the company soared more than 12% at close and continued to climb higher in the overnight session after Bitcoin prices surged above $69,000 for the first time since early June and institutional investors added to their MSTR positions in the second quarter.
Webull Corp. (BULL): The financial company’s shares soared over 14% overnight after it reported blockbuster second-quarter results and said the elimination of the Pattern Day Trade (PDT) rule delivered sizable returns for the company.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all traded higher at the time of writing
The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.01% amid ‘extremely bullish’ sentiment.
Asian markets were trading higher at the open on Wednesday. South Korea’s KOSPI, Japan’s Nikkei 225, China’s SSE Composite and Australian stocks were all in the green at the time of writing.
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