Treasury's Bond Buyback Sparks Inflation Jitters Ahead of Jackson Hole

The 10-year breakeven rate jumped to 2.34% on Thursday, its highest level since June, as markets digested the Treasury Department's surprise decision to double its long-end bond buybacks. The move, intended to improve liquidity after yields hit crisis-era highs, instead raised alarms about "yield curve control" and stoked inflation expectations. Traders are now pricing in higher-for-longer inflation, complicating the Fed's...