By Rae Wee, Harry Robertson and Gertrude Chavez-Dreyfuss
SINGAPORE/LONDON/NEW YORK, Aug 20 (Reuters) – The U.S. Treasury’s surprise bond buyback failed to quell lingering concerns about inflation and expanding government debt, as bond yields rose on Thursday, dragging the dollar higher as well.
The Treasury responded on Wednesday to U.S. long-bond yields hitting the highest level since 2007 by doubling long-end buybacks to at least $4 billion per operation.
The move, after a sharp selloff in long-duration debt, provided instant relief to a market that has been under pressure from concerns about fiscal debt, inflation and competition from huge AI-related borrowing.
Investors,…