Dow, S&P 500, and Nasdaq open higher as Treasury bond buyback plans push yields lower

US stock markets opened higher on Tuesday as Treasury yields declined following the government’s latest bond buyback operations. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all climbed at the open, with investors responding to favorable conditions created by the Treasury Department’s ongoing effort to hoover up its own debt from the secondary market. The move came a day after the Treasury announced a liquidity support buyback on August 18, part of a broader program that has been running throughout 2026. When the government buys back its own bonds, it shrinks the available supply in the market. Less supply means higher bond prices, which move inversely to yields. Lower yields, in turn, make stocks look comparatively more appealing. What the Treasury is actually doing The buyback program targets what are called “off-the-run” securities. These are older Treasury bonds that have been superseded by newer issues and tend to trade with less liquidity. By purchasing these less liquid securities, the Treasury improves the functioning of the broader bond market by removing instruments that can clog up trading flows. It also gives the government a tool for managing its...