Global financial markets experienced a notable reversal after the Treasury Department announced plans to expand its purchases of long-term government bonds by at least double beginning in September. The strategic intervention led to a retreat in Treasury yields from recent highs and provided support for risk-oriented assets.
Benchmark 10-year Treasury yields declined by approximately 5 basis points to settle at 4.65%, while 30-year bond yields decreased 9 basis points to 5.19%. The decline in yields helped major equity indices recover. The S&P 500, Dow Jones, and Nasdaq each rose 0.2% on Wednesday, successfully ending a three-session decline.
The cryptocurrency market reacted strongly to the macroeconomic developments. Bitcoin surged more than 9%, crossing the $70,000 threshold for the first time since June.
In other market news, Moderna shares rallied nearly 177% following positive clinical trial data for a personalized mRNA-based cancer treatment developed with Merck, lifting the broader healthcare sector by 3.5%. Meanwhile, international crude benchmarks climbed toward $92 per barrel amid escalating geopolitical tensions involving the United States and Iran, as national debt figures surpassed $40 trillion.
Simultaneously, the Federal Reserve released minutes from its July policy meeting, revealing that three members favored raising interest rates by 25 basis points. Despite this hawkish sentiment, market participants remained largely focused on the Treasury's bond market intervention.
