U.S. stock indices rose following the Treasury Department's decision to sharply increase government debt buybacks

U.S. stocks rose at the opening bell on August 19 after the U.S. Treasury announced that it would double the maximum amount of government debt buybacks—from $2 billion to “at least” $4 billion. This led to a drop in Treasury yields and a rise in stock indices, according to CNBC.

The S&P 500 and the Nasdaq Composite rose 0.4%, while the Dow Jones Industrial Average gained 0.2%.

The yield on 30-year bonds fell by nearly 9 basis points to 5.196%, after reaching its highest level since 2007 in recent days. The yield on benchmark 10-year bonds fell by 6 basis points to 4.644%.

Government bonds around the world came under pressure due to high oil prices and fears of a renewed surge in inflation.

This news story is being updated.

This article was AI-translated and verified by a human editor