Shafaqna English– The Treasury Department announced new steps on Wednesday(19 Aug 2026) to prop up long-duration debt, stepping in to curb a sustained rise in bond yields that had rattled international financial markets.
The decision to double the scale of buybacks for long-term debt came in the wake of a massive bond selloff that drove the 30-year Treasury yield to its highest point since 2007. This was fueled by fears of an imminent escalation in the U.S.-Israeli conflict with Iran, coupled with mounting anxiety over America’s worsening fiscal outlook.
Rising bond yields translate into higher borrowing costs, placing strain on households, corporations, financial markets, and the federal budget alike. Meanwhile, total outstanding public debt crossed the $40 trillion mark on Wednesday.
Source: Reuters