Yields head lower after Treasury offers liquidity support

U.S. Treasury yields slipped Wednesday morning after the Treasury Department said it would double the size of liquidity support buyback operations for longer-dated bonds. The move eased pressure on borrowing costs as longer-maturity euro zone bonds also retreated from multi-year highs reached during a global selloff tied to worsening fiscal concerns, supply shocks and inflation fears. Trading also looked ahead to the Federal Reserve’s expected publication of minutes from its latest policy meeting and a 20-year bond auction. TD Securities’ Gennadiy Goldberg said markets welcomed the signal but noted the Treasury could do more, including reducing long-end auction sizes.