Bonds & Rates
Home›Bonds & Rates›Government Bonds›Treasury buyback promise fades as long yields rise aga…
Treasury buyback promise fades as long yields rise again
Despite plans to boost longer-dated debt repurchases, 10-year and 30-year Treasury yields climbed after earlier dropping, as inflation, oil prices, heavy issuance, and a rising deficit kept pressure on rates.
Yahoo Finance reports that the impact of U.S. Treasury Secretary Scott Bessent's bond market intervention quickly faded on Thursday, with investors largely shrugging off the announcement that the Treasury would at least double planned buybacks of longer-dated debt.
The move was intended to add liquidity to a “thin” summer market and reduce upward pressure on government borrowing costs. After long bond yields reached 19-year highs, Bessent said repurchases would be increased to bring down long-term rates and shift the Treasury toward more shorter-term borrowing.
According to Yahoo Finance, yields on the 10-year and 30-year Treasuries rose again on Thursday after dropping on Wednesday, though they eased from intraday peaks. The article cites a mix of concerns weighing on rates, including elevated inflation, higher oil prices linked to the war in Iran, and a large volume of debt issuance from tech companies seeking to lead the AI boom.
The report also points to fiscal pressures, including a budget deficit projected to top $2 trillion for fiscal year 2026 and the national debt crossing $40 trillion. Bessent told CNBC that buybacks could be even larger than $4 billion, but analysts quoted in the article said the intervention is unlikely to address structural drivers of the bond market stress.