U.S. long-term Treasury yields fell markedly, the dollar weakened, and international gold prices surged after the U.S. Treasury announced on Wednesday that it would significantly increase the scale of long-term Treasury buybacks.
Gold futures on the COMEX topped 4,500 U.S. dollars an ounce on the day.
The U.S. Treasury said in a statement on Wednesday that it plans to at least double the size of its buyback program for 10‑ to 30‑year Treasury bonds, aiming to provide more liquidity support to the long‑end of the market.
Following the announcement, long‑term Treasury prices rose and yields fell. The 30‑year yield, which had climbed to around 5.34 percent, dropped noticeably, while the dollar index also declined.
Robert Gottlieb, a U.S. precious metals analyst, said the Treasury's move to expand its long‑term bond buyback program caught the market completely off guard.
He also said that lower long‑term Treasury yields and the potential for further dollar weakness are clearly positive for gold.
U.S. Treasury data shows that the federal government's total debt has surpassed 40 trillion U.S. dollars.
Market watchers believe that while expanding long‑term bond buybacks may help ease pressure in the long‑end of the market, it does little to address the underlying issues of widening fiscal deficits and the continued swelling of U.S. debt.
US expands long-term Treasury buyback program, driving gold prices sharply higher
US expands long-term Treasury buyback program, driving gold prices sharply higher
Ukrainian President Volodymyr Zelensky said on Friday that he is ready for trilateral talks with the United States and Russia "even tomorrow," though the timing ultimately depends on Moscow.
In a phone call with U.S. Special Envoy Steve Witkoff and Jared Kushner, Zelensky agreed to a planned meeting in Abu Dhabi in the first half of November, according to Ukrainian sources. "We are ready to meet at any time, even tomorrow, but it all depends on the Russian side," he said.
Zelensky stressed that the top priority is ensuring the talks take place. He also expressed hope that European and other partners could join the U.S. in the discussions, and stressed the need to hold the trilateral talks at the leaders' level, saying it is necessary to move from technical-level negotiations to a meeting of leaders, as key issues can only be resolved at the highest level.
On the Russian side, Kremlin spokesperson Dmitry Peskov confirmed on Friday that trilateral negotiations on security guarantees for Russia and Ukraine will begin in Abu Dhabi in the first half of November. He noted that the format is still being discussed, but did not rule out future European participation.
Russian President Vladimir Putin said on Thursday that following a meeting with U.S. Special Envoy Witkoff, Russia and the U.S. had agreed to restart the trilateral process. He clarified that the goal is to discuss how to ensure long-term security for both Russia and Ukraine after a final peace agreement is reached, rather than simply pursuing a temporary ceasefire.
Zelensky says Ukraine expects trilateral talks with U.S., Russia as early as possible
Zelensky says Ukraine expects trilateral talks with U.S., Russia as early as possible
