"US Interest Rates in Free Fall!" Long-Term Bond Yields Crash Overnight as Traders Rush Ahead of US Treasury's $4 Billion Buyback!

Global financial markets are witnessing an aggressive drop in US government borrowing costs as long-term Treasury yields tumbled across the board in a sudden, sharp reversal. In an immediate market reaction, the 30-year bond yield plunged to 5.187% from 5.337%, the 20-year yield slid to 5.176% from 5.332%, and the benchmark 10-year yield dropped to 4.637% from 4.748%. This rapid cooling of yields was ignited directly by the US Department of the Treasury's announcement that it will double its long-term debt buyback operations from $2 billion to at least $4 billion per operation.

What has caught market watchers off guard is the speed of the reaction: the official buyback operations are scheduled to start only on September 9-a full three weeks away-yet the market has already moved decisively. In the investing world, this is known as "pricing in" or front-running the news. Big institutional investors and Wall Street traders did not wait for the actual launch date; knowing that the US government will soon step onto trading desks as a guaranteed mega-buyer with billions in liquidity, funds rushed to buy up bonds early, driving bond prices up and pushing yields down instantly.