On Tuesday, one or more investors bought an exchange-traded fund that is highly sensitive to fluctuations in long-term US Treasury yields. Just a day later, the US Treasury unexpectedly announced an increase in long-term US debt repurchases, triggering a rebound in the bond market. The $1.5 billion Pimco 25-year zero interest US Treasury Index ETF attracted a record inflow of $123 million, and the volume jumped to 5.2 million shares, almost double the peak before 2024. The ETF invests in so-called STRIPS, zero-interest securities created by separating the principal and interest payments of bonds, thereby increasing the bet on long-term interest rate trends in the US. The US Treasury Department said early Wednesday morning that it plans to at least double the size of repurchases of US government bonds maturing in 10 to 30 years. After the announcement, the 30-year US Treasury yield fell 0.1 percentage points to 5.18%, falling from a 20-year high.

On Tuesday, one or more investors bought an exchange-traded fund that is highly sensitive to fluctuations in long-term US Treasury yields. Just a day later, the US Treasury unexpectedly announced an increase in long-term US debt repurchases, triggering a rebound in the bond market. The $1.5 billion Pimco 25-year zero interest US Treasury Index ETF attracted a record inflow of $123 million, and the volume jumped to 5.2 million shares, almost double the peak before 2024. The ETF invests in so-called STRIPS, zero-interest securities created by separating the principal and interest payments of bonds, thereby increasing the bet on long-term interest rate trends in the US. The US Treasury Department said early Wednesday morning that it plans to at least double the size of repurchases of US government bonds maturing in 10 to 30 years. After the announcement, the 30-year US Treasury yield fell 0.1 percentage points to 5.18%, falling from a 20-year high.