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Treasury yields rebound, wiping out the decline following Bessent’s intervention
The rebound erased Wednesday’s drop after the Treasury doubled long-dated buybacks to at least $4 billion per operation, analysts said.
- On Wednesday, Treasury Secretary Scott Bessent announced the U.S. Treasury would double long-term bond buybacks to at least $4 billion per operation, targeting 10- to 30-year maturities. The 30-year yield spiked to 5.627% Thursday and the 10-year climbed to 4.71%, erasing Wednesday's gains.
- Rising yields pushed the 30-year to its highest level since 2007 on Tuesday, with the bond selling at auction last week at 5.22%, the highest since 2001. National debt crossed $40 trillion Wednesday after ballooning $3 trillion in 12 months, prompting Bessent's intervention.
- The Treasury increased maximum repurchases from $2 billion to at least $4 billion per operation, starting September 9 through early November and seeking "greater liquidity support in longer-dated nominal sectors." Jefferies analysts argued the additional purchases are too small against the $32 trillion Treasury market to alter supply-demand dynamics.
- JPMorgan Chase analyst Maia Crook warned the buybacks "belie the underlying structural challenges and do nothing to address them," signaling Treasury credibility for "regular and predictable" debt management is increasingly in question. Eoin Walsh at TwentyFour Asset Management told the Financial Times the intervention looks like "a sticking plaster."
- The Bipartisan Policy Center projects the government could reach its $41.1 trillion borrowing limit between late winter and midsummer 2027. Annual interest payments are projected to exceed $1 trillion this year, consuming about 19% of federal revenue and rising to 26% by 2036 if current trends persist.
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Scott Bessent, US Secretary of Treasury, Believes He Is Capable of Defying the Power of Bond Markets
By announcing Wednesday, August 19, that the US Treasury would double its long-term US debt buybacks, Scott Bessent seeks to lower the long-term rates that finance the US economy.
·Paris, France
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The Toronto Star+4 Reposted by 4 other sources
Why Treasury Secretary Bessent’s moves to calm the bond market haven’t worked so far
WASHINGTON (AP) — Interest rates rebounded Thursday despite efforts by Treasury Secretary Scott Bessent to put a lid on longer-term borrowing costs, a sign Wall Street investors remain worried about
·Toronto, Canada
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Associated Press News+17 Reposted by 17 other sources
Why Treasury Secretary Bessent's moves to calm the bond market haven't worked so far
Interest rates rebounded Thursday despite efforts by Treasury Secretary Scott Bessent to put a lid on longer-term borrowing costs.
·New York, United States
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Sydney Morning Herald+3 Reposted by 3 other sources
ASX slides lower, Wall Street declines; Guzman y Gomez jumps
A rise in oil prices is sending worries about inflation and yields in the bond market higher, erasing some of the relief the US Treasury Department had created a day earlier.
·North Sydney, Australia
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Total News Sources81
Leaning Left23Leaning Right15Center25Last UpdatedBias Distribution40% Center
Bias Distribution
- 40% of the sources are Center
40% Center
L 36%
C 40%
R 24%
Factuality
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