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Treasury yields rebound, wiping out the decline following Bessent’s intervention
The move reversed Wednesday’s drop as investors questioned whether buybacks can offset heavy Treasury supply and rising borrowing costs.
- Treasury Secretary Scott Bessent announced Wednesday that the U.S. Treasury will double long-term bond buybacks to at least $4 billion per operation, targeting 10- to 30-year maturities to provide liquidity support.
- Mounting investor anxiety over record national debt of $40 trillion, which crossed the threshold on Wednesday, combined with persistent inflation expectations to push long-dated bond yields to multi-year highs, prompting Treasury action.
- By Thursday, bond yields had erased most of Wednesday's gains, with the 30-year yield rising to 5.251%. Senior analysts at JPMorgan Chase warned the buybacks "belie the underlying structural challenges and do nothing to address them."
- Rising Brent crude prices near $94 per barrel amid tensions with Iran continue to fuel market volatility and inflation concerns, offsetting the Treasury's limited liquidity support efforts and complicating the broader economic outlook.
- The Congressional Budget Office projects annual fiscal gaps exceeding $2 trillion this year, leading economists to argue that temporary buybacks cannot permanently alter the fundamental supply-demand imbalances driving persistent interest rate increases.
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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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Total News Sources86
Leaning Left23Leaning Right16Center25Last UpdatedBias Distribution39% Center
Bias Distribution
- 39% of the sources are Center
39% Center
L 36%
C 39%
R 25%
Factuality
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