Market participants are questioning the objectives of the US government's debt repurchase program after recent liquidity operations failed to meet expected volumes, Reuters reported. The Treasury is currently conducting near-daily buybacks to stabilize the bond market, including an operation on Oct 1 to purchase up to $6B of securities with maturities between 10 and 20 years.

The interventions come as the 10 year yield hit 5.3%, a 52 week high. This upward pressure on yields has persisted even after Personal Consumption Expenditures data arrived better than market forecasts, a development that typically eases inflation fears and lowers rates.