Stock futures were struggling for direction Thursday as Treasury yields
stabilized after an unexpected intervention pushed them down from multiyear highs.
The surprise announcement showed that the government is willing to step in and help the bond market, easing investors' worries about higher long-term interest rates.
"Beyond the increased flexibility to manage market liquidity, we view this announcement primarily as a signal that U.S. policymakers might well get creative in addressing the worryingly high refinancing costs at the long end of the [Treasury] curve," Metzler said.
The Treasury's bond buyback plan triggered a slump in the dollar, which was sliding again on Thursday.
