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10-year Treasury yield rises to 4.856% despite $6 billion buyback

The 30-year yield climbed above 5.3% as WTI crude near $97 added inflation pressure across bond markets.

Reported · Written up by our desk · Government Bonds

U.S. Treasury yields pushed higher even after the Treasury Department announced a $6 billion repurchase of long-dated debt, with the 10-year Treasury yield reaching 4.856%, its highest level since October 2023, according to CoinDesk.

The Treasury said the buyback would target Treasuries maturing in 10 to 20 years to improve liquidity and ease pressure on long-term borrowing costs, but yields instead continued to rise after the announcement. The 30-year yield climbed above 5.3%, approaching its August high.

CoinDesk also noted that bond yield increases are often treated as a headwind for risk assets, including bitcoin, given the opportunity cost of holding longer-duration Treasuries. The article adds that this comparison is more straightforward when economic growth is driving yields higher, and argues that current pressure is not being offset by buybacks.

Broader bond markets saw similar moves, with yields rising in Europe and Japan, as investors weighed inflation concerns and higher oil prices, with WTI crude cited around $97. The buyback followed earlier Treasury plans to at least double its long-duration buybacks and came alongside coordinated U.S. and Japan action to support the yen.

Latest closeWTI crude $97.01 ▲4.3%|Bitcoin $77,087.06 ▼1.5%

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