US Treasury's $5.2 Billion Bond Purchase Did Not Lower Yields

The US Treasury entered the market to buy back up to $6 billion in long-term bonds. However, it only purchased approximately $5.2 billion. Despite this intervention, the 10-year bond yield approached 5%. The bond purchase program aimed to limit the rise in long-term interest rates. But due to market conditions, the purchase amount fell short of the target. Upward pressure on yields continues. Investors' focus has now shifted to the US inflation data to be released today. The inflation figures are critically important for the course of bond yields and monetary policy expectations. The 10-year bond yield approaching 5% could increase borrowing costs and put pressure on financial markets. The inflation data will be decisive for the direction of yields. Not investment advice.