Treasury More Than Doubles Debt Purchases as Stock Futures Jump
Updated
Updated · CNBC · Aug 19
Treasury More Than Doubles Debt Purchases as Stock Futures Jump
3 articles · Updated · CNBC · Aug 19
Summary
U.S. stock futures rose sharply after the Treasury Department said it would more than double its purchases of government debt in a surprise move before Wednesday trading.
Bond yields had been spiraling higher in recent weeks, and the larger buying program signaled an effort to steady the Treasury market by boosting demand for government bonds.
The intervention was widely read as support for risk assets, with investors treating it as a market backstop aimed at preserving the broader stock rally.
The move puts Treasury market stress at the center of trading, suggesting government bond operations are again driving sentiment across equities and other assets.