Hecla Mining and Coeur Mining Rise on Treasury Buyback Plan Boosting Precious Metals
Shares of Hecla Mining (HL) and Coeur Mining (CDE) surged over 13% following a U.S. Treasury plan to double buybacks of long-dated government debt, which pushed yields lower and supported precious metals prices. The move came as the Treasury announced increased repurchases in the 10- to 30-year bond sector, causing the 10-year yield to drop by five basis points and the 30-year yield to fall eight basis points. Lower interest rates reduce the cost of holding non-yielding assets like gold and silver, which benefits mining companies with high operating leverage. Despite Wednesday's sharp gains, both Hecla Mining and Coeur Mining remain flat or negative for the year-to-date period. The rally appears more as a catch-up trade rather than an established upward trend in miner stocks.
