--- title: "South Korea's Storage Giants Announce \"Massive Buybacks\"! Kospi Surges 6%, Global Bond Market Storm Eases, Gold Dips Slightly" type: "News" locale: "en" url: "https://longbridge.com/en/news/296449942.md" description: "The yield on US 30-year Treasury bonds fell 1 basis point to 5.18%, extending Wednesday's 9-basis-point decline; the benchmark 10-year yield also dropped about 1 basis point to 4.63%, having already fallen 6 basis points in the previous trading session. SK Hynix surged 12% after announcing a stock buyback plan, while Samsung Electronics rose 8.5%. The Nikkei 225 closed up 1.4%, and the Seoul Composite Index in South Korea closed up 5.9% at 6,852.58 points" datetime: "2026-08-20T23:37:09.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296449942.md) - [en](https://longbridge.com/en/news/296449942.md) - [zh-HK](https://longbridge.com/zh-HK/news/296449942.md) generator: "portal-rs" --- # South Korea's Storage Giants Announce "Massive Buybacks"! Kospi Surges 6%, Global Bond Market Storm Eases, Gold Dips Slightly The US Treasury Department announced a significant expansion of its long-term Treasury bond buyback program, halting the recent selling momentum in global bond markets and boosting Asian stocks and bonds across the board, while the US dollar stabilized after touching a three-month low. On Thursday, the yield on US 30-year Treasury bonds fell 1 basis point to 5.18%, continuing Wednesday's 9-basis-point drop; the benchmark 10-year yield also declined by about 1 basis point to 4.63%, following a cumulative 6-basis-point decrease in the previous trading session. Bloomberg's index tracking US Treasuries with maturities of 20 years or more rose 1.7% in a single day on Wednesday, marking its largest daily gain since February 2025. Driven by this, government bond prices in Japan, Australia, and New Zealand rose in tandem. SK Hynix and Samsung Electronics sequentially announced large-scale shareholder return plans, totaling up to 140 trillion South Korean won, directly igniting the South Korean stock market. The MSCI Asia Pacific Index rose 1.6%, ending two consecutive days of declines. The Korea Composite Stock Price Index (Kospi) led gains in the Asia-Pacific region, rising between 5.5% and 5.9%; SK Hynix surged 12% on the buyback announcement, while Samsung Electronics climbed 8.5%. The Nikkei 225 closed up 1.4% at 66,216.79 points; the Seoul Composite Index in South Korea closed up 5.9% at 6,852.58 points. Jack McIntyre, portfolio manager at Brandywine Global Investment Management, stated, "This administration needs a win, perhaps achieved by artificially suppressing long-term Treasury rates." "The sentiment in global long-end markets is more pessimistic than I have seen in a long time; they had to act." > - The Euro Stoxx 50 opened flat, with Germany's DAX down 0.3%, the UK's FTSE 100 up 0.1%, and France's CAC 40 up 0.1%. > - The Nikkei 225 closed up 1.4% at 66,216.79 points; the Seoul Composite Index in South Korea closed up 5.9% at 6,852.58 points. > - The yield on US 30-year Treasury bonds fell 1 basis point to 5.18%, extending Wednesday's 9-basis-point decline; the benchmark 10-year yield also dropped about 1 basis point to 4.63%. > - Japan's 10-year yield fell 6 basis points to 2.835%. > - The US Dollar Index rose slightly by 0.1% during Asian trading hours, after falling 0.8% the previous day to hit its lowest level since May. > - The euro rose 0.1% against the US dollar to 1.1687, its highest level since May 14. > - Brent crude oil rose 0.4% to approximately $92 per barrel. > - Gold fell 0.8% to approximately $4,480 per ounce. > - Bitcoin rose above $69,300. ## Buyback Scale at Least Doubles as Treasury Targets Long-End Rates The US Treasury Department announced it would at least double the scale of its long-term Treasury bond buybacks. This move aims to suppress long-term Treasury yields, which have recently climbed to multi-decade highs. Earlier this week, long-term US Treasury yields surged. The 30-year yield touched its highest level since 2007; last week's 10-year Treasury auction settled at the highest financing cost since 2007, while the 30-year auction yield hit a new high not seen since 2001. Market participants compared this buyback operation to the Federal Reserve's "Operation Twist." The Treasury has not specified the exact source of funding for the buybacks, but it typically relies on short-term Treasury bills to meet floating cash needs. If authorities effectively replace long-term bonds with short-term ones, the mechanism is similar to "Operation Twist." Jack McIntyre, portfolio manager at Brandywine Global Investment Management, stated, "This administration needs a win, perhaps achieved by artificially suppressing long-term Treasury rates." "The sentiment in global long-end markets is more pessimistic than I have seen in a long time; they had to act." ## Market Skeptical About Buyback Effectiveness as Dollar Narrative Shifts Quietly Although short-term market sentiment improved significantly, several analysts remain reserved about the sustained effectiveness of the buyback policy. Gerald Gan, Chief Investment Officer at Reed Capital, said, "The buyback plan convinces me that the US Treasury is extremely concerned about long-term borrowing costs. But like interventions in the yen exchange rate, the effect is temporary; buybacks cannot continue for too long." In the foreign exchange market, the Bloomberg US Dollar Index rose slightly by 0.1% during Asian trading hours, after falling 0.8% the previous day to hit its lowest level since May. The euro rose 0.1% against the US dollar to 1.1687, its highest level since May 14. Lloyd Chan, FX strategist at MUFG Bank in Singapore, wrote in a research note, "Buybacks alone are unlikely to change longer-term fundamentals, but they do signal that policymakers are inclined to resist further rises in yields. This means the relative interest rate logic that previously supported the US dollar is fading." Bloomberg market strategist Mark Cranfield also pointed out, "For investors weighing Treasury buybacks against the continuing expansion of the US fiscal deficit, the US dollar is becoming the weakest link, providing room for further strengthening of Asian currencies." ## Root Causes of Bond Sell-off Remain Unresolved, Gold and Oil Diverge The deep-seated triggers of this round of bond market turmoil have not dissipated. Recent pressure on global bond markets stems from investors demanding higher compensation for inflation risks and rising government debt levels, with tensions in the Middle East further exacerbating price pressures; meanwhile, concentrated corporate bond issuance to finance the AI boom has amplified the intensity of this sell-off. In the commodities market, Brent crude oil rose 0.4% to approximately $92 per barrel. Trump previously stated he would launch an "unprecedented economic war" against Iran and accused Iran of missing the opportunity to reach an agreement with him, with geopolitical risk premiums supporting oil prices. Gold retreated after rising to its highest level since early June, falling 0.8% to approximately $4,480 per ounce. Bitcoin rose above $69,300, after Trump met with cryptocurrency industry executives at the White House and urged Congress to push through related legislation. ### Related Stocks - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [GLDM.US](https://longbridge.com/en/quote/GLDM.US.md) - [UGL.US](https://longbridge.com/en/quote/UGL.US.md) - [GLD.US](https://longbridge.com/en/quote/GLD.US.md) - [IAU.US](https://longbridge.com/en/quote/IAU.US.md) - [GLL.US](https://longbridge.com/en/quote/GLL.US.md) - [GLDW.US](https://longbridge.com/en/quote/GLDW.US.md) - [SGOL.US](https://longbridge.com/en/quote/SGOL.US.md) - [518850.CN](https://longbridge.com/en/quote/518850.CN.md) - [GOLD.AU](https://longbridge.com/en/quote/GOLD.AU.md) - [EWY.US](https://longbridge.com/en/quote/EWY.US.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) ## Related News & Research - [Why is your gold waiting on a speech?](https://longbridge.com/en/news/296733808.md) - [PRECIOUS-Gold retreats as bond yields surge to highest levels in decades](https://longbridge.com/en/news/296241483.md) - [PRECIOUS-Gold holds steady with Fed minutes in focus](https://longbridge.com/en/news/296310600.md) - [PRECIOUS-Gold drops after sharp gains as inflation concerns come to the fore](https://longbridge.com/en/news/296506502.md) - [Thailand to discuss proposed taxes with gold association this week, Finance Minister says](https://longbridge.com/en/news/296736129.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**