Bond yields plunge after Treasury announces surprise move to ease rising rates

Longer-term U.S. Treasury yields dropped sharply Wednesday after the Treasury Department announced that it would increase the size of its government debt repurchases by “at least double” in a surprise move.The yield on the 30-year Treasury bond plunged from 5.26% to as low as 5.18%. The 10-year yield, which has a heavy hand in steering consumer borrowing rates, was less impacted by the announcement but still dropped from 4.68% to 4.64%. U.S. stocks also opened slightly higher. The S&P 500 rose 0.4% and the Nasdaq Composite rose 0.3%. In effect, the Treasury Department’s announcement means the agency will be stepping in as a larger buyer of longer-term bonds, which have been selling off.Wednesday’s announcement abruptly altered the “tentative buyback schedule” Treasury had released just two