The US Treasury Department announced on Wednesday it will buy back up to $6 billion of government debt as it seeks to contain long-term borrowing costs.The move, which is triple the size of its normal operations, comes as Treasury yields have been rising in recent months, making borrowing costs higher for consumers. US Treasury yields are linked closely to Gulf states, where most currencies are directly pegged to the US dollar.The Treasury Department previewed the action last month after long-term yields rose to near two-decade highs over fears of rising US government debt – which recently passed $40 trillion – and oil-driven inflation.“There was like this fever that was building,” Treasury Secretary Scott Bessent said during a Breitbart News event on Tuesday.He said the programme was aimed to calm a "fever" in the bonds market. Long-term yields have been steadily rising since the Federal Reserve held interest rates steady in July and when traders were not convinced that Fed Chairman Kevin Warsh offered a clear path to return inflation to 2 per cent.Despite Mr Bessent’s remarks, Treasury yields rose after Wednesday’s announcement. The yield on the benchmark 10-year Treasury note rose more than 3 basis points to 4.835 per cent, while the 30-year Treasury note was up more than 2 basis points at 5.289 per cent. The two-year Treasury, which is closely linked to Federal Reserve poli...
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