Treasury yields rebound, wiping out the decline following Bessent’s intervention
Investors said the buyback plan may be too small to offset heavy borrowing and inflation worries, with 30-year yields up 5.7 basis points.
- On Thursday, U.S. Treasury yields rebounded, reversing Wednesday's decline after Treasury Secretary Scott Bessent doubled bond buybacks to at least $4 billion per operation, with the 30-year yield climbing to about 5.24%.
- Mounting concerns over the $40 trillion national debt and high budget deficits fueled market skepticism that undermined the Treasury's intervention before it could take hold.
- Critics dismissed the buyback as 'rearranging deckchairs on the Titanic,' citing the $4 billion target as too small relative to the $32 trillion Treasury market, while analysts at Evercore ISI warned the impact would be short-lived.
- Defending the plan on CNBC Thursday, Bessent stated the department has a 'big toolkit' and could expand buybacks further, while signaling the administration will soon announce increased fiscal consolidation efforts.
- Broader fiscal and geopolitical pressures—rising oil prices tied to the Iran conflict and heavy corporate debt issuance for AI infrastructure—continue straining yields, with economists skeptical that tactical interventions alone can sustainably lower borrowing costs.
112 Articles
112 Articles
Trump official sold his soul to 'gaslight' US — and failed: Nobel economist
One of President Donald Trump’s officials has proven he’s willing to “sell his soul” to “gaslight” Americans about the economy, but his failure to do so has both harmed the U.S. and destroyed his credibility. This is according to Nobel Prize-winning economist Paul Krugman, who on Friday detailed how Treasury Secretary Scott Bessent’s “Dear Leader” approach flopped. As Krugman explains, when Bessent was initially appointed, experts were relieved …
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…
Interest rates are rising all over the world and here at home. The question is, has the debt ceiling been reached? Two small interventions by the US Treasury Secretary suggest so.
The impact of the US Treasury Department's announcement of a planned long-term bond purchase program on bond yields was short-lived.
Coverage Details
Bias Distribution
- 43% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
