Markets Rally on Treasury Liquidity Boost

Global markets steadied as the U.S. Treasury doubled liquidity support for long-dated debt in an effort to temper the sell-off in 10- to 30-year notes and curb how high long yields can rise. Analysts say the intervention mostly mutes upward pressure on long yields rather than reversing it, with risks of further buybacks if needed, while authorities appear prepared to resist significant moves above the 5% area for the 10-year. The move comes as foreign holders have reduced their share of U.S. Treasuries, contributing to a more fragile demand dynamic and raising questions about dollar and funding-cost trajectories if activism continues. In parallel, Asia and Europe initially steadied or rallied as yields cooled and risk sentiment improved, with U.S. stock futures and major indices bouncing on expectations of government support for debt markets. Investors are awaiting Federal Reserve minutes and corporate outlooks for guidance, weighing the durability of the liquidity backdrop against debt, inflation, and geopolitical risks.