The U.S. Treasury Department announced it will increase its buyback operations for longer-dated bonds, raising the amount from $2 billion to at least $4 billion per operation over the next two months. This decision led to a decline in bond yields, with the 30-year Treasury yield dropping approximately 9 basis points to around 5.19%, marking its largest one-day decrease since October 2025.
The reduction in yields positively influenced the stock market, ending a three-day losing streak with major U.S. indexes rising about 0.2%. Additionally, cryptocurrencies saw gains, with Bitcoin increasing over 7% and Ether rising more than 18%, as lower Treasury yields typically boost risk assets.
The national debt has now surpassed $40 trillion, with a deficit of $1.8 trillion recorded this year, raising concerns about fiscal health. Interest payments on this debt have reached nearly $1.2 trillion, becoming a significant budget expenditure.
Former President Trump criticized the Federal Reserve for maintaining high interest rates, suggesting that the U.S. should not pay as much on its debt compared to countries like Switzerland. He also announced plans for economic sanctions against Iran, emphasizing a strategy of financial penalties against nations aiding Tehran.
In the pharmaceutical sector, shares of Moderna and Merck surged after promising results from a cancer vaccine trial, which showed that combining their vaccine with Merck's Keytruda significantly improved patient outcomes.
Lastly, Nvidia is reportedly facilitating connections between companies needing AI infrastructure and data center operators in the Nordics, as demand for AI capabilities grows in that region