A Royal Bank of Canada capital market strategist said that the US Treasury's plan to expand repurchases still has a “positive effect” on long-term treasury bonds, even though the 30-year yield has recovered to roughly the level before the department announced the repurchase plan last month. In a research report released on Wednesday, strategists pointed out that long-term yields generally followed the rise in oil prices, while long-term swap spreads have continued to rise since the repurchase plan was announced, so the plan was “not entirely in vain.”

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