US treasury sells $22 billion of 30 year bonds at a high yield of 5.308%

The useful part

Treasury is starting a series of bond buybacks aimed at improving liquidity and calming volatility in the longer end of the yield curve. The first operation will purchase up to $6 billion of older Treasury securities with maturities between 10 and 20 years. At least six additional buybacks are expected over the coming weeks, with each totaling at least $4 billion.

How it works

• As a result, Treasury yields moved higher following the announcement.
• For beginner traders, the Treasury is buying older, less actively traded bonds and replacing that financing by issuing newer securities.
• The Fed is not printing money, and the government's overall debt is not being reduced.
• The market was initially disappointed because some traders expected a larger buyback.
• The market is essentially saying the purchases may improve liquidity, but they are not large enough to offset concerns about infla...

Details worth keeping

I don't think I've ever seen a dealer number as low as 2.2%. I wonder if the bond buyback influenced the buying interest today. Of course the US yield are near the highs going back to 2007.