Oil rises as markets rebound on US Treasury debt buyback plan

US Treasury Debt Buyback Plan Sparks Global Market Rebound

Poinews.com – Equity markets around the world staged a sharp recovery on Thursday, snapping a wave of selling that had gripped artificial-intelligence-linked names the previous session. The catalyst: the US Treasury Department announced it would at least double the scale of its operations to purchase longer-dated government debt, committing $4 billion (€3.4 billion) or more per transaction beginning in September. The intervention relieved pressure on fixed-income markets that had driven yields toward multi-decade peaks over recent months and restored risk appetite across Asian trading floors.

Asian Equities Surge

South Korea’s Kospi index leapt 6.1% to close at 6,858.91, clawing back most of the 5.8% plunge it suffered on Wednesday. Within the index, Samsung Electronics climbed 9.7%, and SK Hynix rocketed 14.1% after the memory-chip manufacturer disclosed its own share repurchase programme. Japan’s Nikkei 225 recovered roughly 0.9%, with the broader Topix adding 0.8% as investors recouped part of Wednesday’s losses. In mainland and offshore China, the Hang Seng index gained 1.1% to 25,786.32, while the Shanghai Composite edged up 0.3% to 3,905.23. Australia’s S&P/ASX 200 also ticked higher by 0.3% to 9,066.40.

Bond Yields Retreat

The 10-year US Treasury yield slipped to approximately 4.64%, down from 4.71% on Tuesday. The 30-year note’s yield dropped to 5.18% from 5.28%, pulling back from its highest reading since 2007. In recent months, yields had been pushed upward by inflation worries tied to the war in Iran alongside mounting government borrowing. Japan’s 10-year government bond yield, which had been hovering near a three-decade peak, eased to around 2.83% from above 2.89% on Wednesday.

Oil Holds Near Multi-Week Highs

Crude prices continued their upward drift on Thursday, remaining close to their strongest levels in weeks. The unresolved confrontation between Washington and Tehran over the Strait of Hormuz keeps supply anxieties elevated across the Middle East, even in the absence of any fresh single escalation event. Brent crude, the global benchmark, gained 0.3% to $91.90 per barrel, while the US benchmark (WTI) edged up 0.2% to $84.57. Both benchmarks sit well above the levels they traded at before the war commenced. Since the start of August, when Brent was quoted near $87.38, prices have climbed steadily on persistent geopolitical risk.

Wall Street and Currencies

On Wall Street, Wednesday’s session saw the S&P 500 post a 0.2% gain — its first positive close in four trading days, ending a three-day losing streak. The Dow Jones Industrial Average and the Nasdaq composite each added 0.2% as well. In currency markets, the US dollar firmed to 158.60 yen from 158.16, while the euro slipped marginally to $1.1676 from $1.1677.