Yields on long-term US Treasury bonds surged on Wednesday after the government announced a $6 billion (€5.2bn) bond buyback, disappointing investors who had expected a larger intervention.
The yield on the benchmark 10-year Treasury note rose above 4.85%, its highest level in nearly three years, before easing slightly.
The yield on the 30-year bond stood at 5.29%, up from 5.26% a day earlier. It reached 5.33% in August, its highest level since 2007.
Treasury yields influence interest rates across the US economy, meaning sustained increases can make mortgages, business loans and other forms of borrowing more expensive. Higher borrowing costs can also slow economic growth and weigh on share prices.
The rise came after the Treasury Department said it would buy back up to $6 billion of bonds maturing in 10 to 20 years on Thursday. This is three times the size of its previous long-dated buyback operation.
