Treasury Bond Buybacks Evoke Memory of Fed’s ‘Operation Twist’

The Treasury Department announced an increase in buybacks of longer-term bonds, a strategy that resembles the Federal Reserve's "Operation Twist," which the Fed last used in 2011 to reduce bond yields. Treasury officials did not immediately provide details on the timing or scope of the buyback program. The original Operation Twist involved the Fed selling shorter-term securities and purchasing longer-term ones to lower long-term interest rates.

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