Treasurys

Buybacks of Treasuries that are infrequently traded relative to its newest, or "on the run," notes and bonds, are intended to support market resilience by creating opportunities for dealers to offload them.

Traders are pricing in roughly 20% odds that the Fed holds rates steady in either November or December.

Five-year notes were the worst performer among Treasury benchmarks, with yields rising by more than 5 basis points, though all rose by at least 4 basis points.

There's been a marked change in trading volume over the past four years at that time as well as a drop in transaction costs that coincide with the growth of passive funds that track index changes.

Treasuries have returned 1.7% this month through Aug. 28, on pace for a fourth straight monthly gain, according to the Bloomberg US Treasury Total Return Index.

In the run-up to Powell's Jackson Hole speech, Treasuries tumbled across the US curve, with the move led by shorter maturities.

The company is selling bonds in five parts, and the longest portion of the deal, a 40-year note, will yield 1 percentage point above Treasuries.

Spreads for Fannie Mae current coupon mortgage bonds, a proxy for securities being created now, jumped 0.07 percentage point to 1.41 percentage point, on track for the most widening in a day since April.

Wagers on aggressive easing by the Fed had been rising in recent days amid debate over whether the central bank should act when it meets next week.

Yields on policy-sensitive two-year Treasuries slid three basis points on Wednesday, while those on 10-year bonds were up by about the same amount.