The S&P 500 ended a three-day losing streak on Wednesday, closing up 0.21% at 7,707.98, after the Treasury Department said it will at least double buybacks of longer-dated government debt. The Nasdaq Composite rose 0.16% to 26,331.09. The Dow Jones Industrial Average added 119.65 points, or 0.22%, to 53,463.05.
The bid faded from the highs. The Dow had been up more than 360 points, about 0.7%. The S&P 500 and Nasdaq were up 0.7% and 0.6% at their peaks.
Treasury said it will lift liquidity-support buybacks in the 10- to 20-year and 20- to 30-year sectors from $2 billion to at least $4 billion per operation, including the 20-year, from Sept. 9 through Nov. 4. The 30-year yield, which had printed a 19-year high above 5.33% on Tuesday, fell more than 10 basis points to 5.184%. The 10-year dropped more than 6 basis points to 4.637%.
Rate-sensitive names caught a bid. Lowe's and Home Depot each gained about 2%. Bitcoin jumped more than 5% to trade above $68,600 after the announcement, with ether up about 8% near $2,072.
July FOMC minutes, released Wednesday, kept a hawkish overlay on the tape. Many participants said tightening would likely be needed if inflation does not decline. Three officials dissented in July in favor of a hike.
The long end still runs this tape. Buybacks took the 30-year off a 19-year high and bought the close a green print. They do not retire the fiscal supply that put that yield there on Tuesday.