Traders work on the floor of the New York Stock Exchange. NYSE The Dow Jones Industrial Average rose on Wednesday as Treasury yields fell after the Treasury Department announced a larger buyback of longer-term debt. The Dow Jones, made up of 30 stocks, added 263 points, or 0.5%. The S&P 500 rose 0.3%, while the Nasdaq Composite fell 0.2%. Yields on the long end of the Treasury curve sank after the Treasury Department said Wednesday it will at least double the size of its government debt buybacks. The largest buyback is aimed at parts of the market with maturities of 10 to 30 years. That will include the 20-year bond. The 30-year Treasury yield, which hit a new 19-year high above 5.33% in the previous trading day, declined nearly 9 basis points to 5.196%. The 10-year Treasury yield lost 6 basis points to 4.647%. “Treasury’s move to double long-term buybacks from $2 billion to $4 billion was purely a liquidity management adjustment for outstanding 30-year bonds. However, markets treated it as a broader easing signal, with yields falling 10 basis points and semis/tech rising sharply,” said Ben Emons, founder of FedWatch Advisors. “This highlights how tight rate dynamics are now correlated with the AI-tech complex rather than traditional interpretations of QE,” he continued. Moderna nearly doubled, soaring more than 90% and heading for its best day on record after an experimental skin cancer vaccine developed with Merck showed success in a late-stage trial. Merck shares rose more than 7%, supporting the Dow. Marvell Technology shares gained more than 12% after announcing a deal with Google related to its tensor processing units and issuing Alphabet a guarantee to buy up to nearly 59 million shares of Marvell common stock. 10-year bond rates hit their highest level in three decades. French 30-year bond rates hit their highest level since 2008. The German 30-year bund yield hit its highest point since 2011. The latest minutes of the Federal Open Market Committee meeting will be released on Wednesday afternoon, given the stark divisions within the central bank. voted to raise rates, a split on which investors will look for more details.
