Treasury Bond Buybacks Evoke Memory of Fed’s ‘Operation Twist’

The Treasury Department announced plans to double the maximum value of long-dated U.S. debt buybacks, specifically targeting 10-to-20-year and 20-to-30-year securities. This surprise move by the Trump administration follows a spike in bond yields and has already resulted in declining yields and rising stocks. Analysts are drawing parallels between this strategy and the Federal Reserve's Operation Twist, a tactic previously utilized in 2011 to lower bond yields and manage the national debt portfolio.