Ammon News - Engineer Mohannad Abbas haddadin, general manager of the Jobkins Center for Strategic Studies, an expert, strategic and economic analyst, said that the US government took a bold step to inject liquidity into the US markets in order to reduce government lending costs when it repurchased long-term bonds by withdrawing old debt from the market before maturity by buying it from investors.

The yield of 30-year Treasury bonds fell almost 14 basis points to 5.198%, decisively retreating from its 19-year peak at 5.337% during Tuesday's session.

The reasons for the US Treasury Department taking this step are to ensure the movement and ease of buying and selling securities within the debt market, calm the markets and relieve the pressure resulting from sharp selling waves and rising costs of financing public debt.

Haddadin added that the economic impact of low yields leads to an increase in government demand for bonds, which increases their prices and lower yields, and easing the cost of borrowing to achieve economic growth in light of inflationary fears and geopolitical tensions, most importantly the Strait of Hormuz, where there is no real agreement between Iran and the United States, in addition to the exhaustion of markets by artificial intelligence to withdraw liquidity to finance data centers.

All this led to a rise in the prices of gold, silver and cryptocurrencies.