Treasury yields rebound, wiping out the decline following Bessent’s intervention
- On Thursday, long-dated U.S. Treasury yields rebounded, erasing declines from Treasury Secretary Scott Bessent's surprise buyback announcement. The 30-year yield climbed to 5.23% and the 10-year yield rose to 4.69%, returning toward pre-announcement levels.
- The Treasury Department announced Wednesday it would at least double long-dated bond buybacks to $4 billion per operation to provide liquidity support in 10- to 30-year securities. The move aimed to reduce supply and boost prices after yields hit multi-year highs.
- Market analysts immediately questioned the intervention's efficacy, with TwentyFour Asset Management's Eoin Walsh calling the plan 'a sticking plaster.' Experts argue small buybacks fail to address structural fiscal deficits and heavy corporate borrowing pressures.
- The U.S. national debt reached a record $40 trillion on Wednesday, the same day as the announcement. Annual interest payments are projected to exceed $1 trillion this year, intensifying concerns about long-term fiscal sustainability.
- Bessent indicated the administration may announce new efforts to reduce the government's budget deficit by Monday. These upcoming signals are critical for determining whether policymakers can restore confidence in long-term debt management.
104 Articles
104 Articles
World shares are mixed and US futures edge higher, while oil prices slip
World shares are mixed following a retreat on Wall Street, as the U.S. Treasury Department's plan to expand government debt buybacks appeared to have only limited capacity to calm markets. U.S. futures edged higher. The Treasury Department said Wednesday that…
Despite the government's strong support, U.S. interest rates went up again on Thursday, August 20th. Treasury Secretary Scott Bessent said he didn't really give importance to recent bond market movements.
Idaho Press
Asian shares advance despite Wall Street losses as US Treasury's moves fail to calm markets
Asian shares are mostly higher following a retreat on Wall Street, as the U.S. Treasury Department's plan to expand government debt buybacks appeared to have only limited capacity to calm markets. U.S. futures edged higher. The Treasury Department said Wednesday…
The impact of the US Treasury Department's announcement of a planned long-term bond purchase program on bond yields was short-lived.
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