Treasury yields rebound, wiping out the decline following Bessent’s intervention
Treasury Secretary Scott Bessent said the buyback program could exceed $4 billion as investors refocused on heavy debt supply and inflation worries.
- 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.
125 Articles
125 Articles
Bessent hints at bond plans
US Secretary of the Treasury Scott Bessent on Thursday said that he might further increase the US government’s repurchases of Treasuries, attempting to jawbone a government debt market that was beginning to balk after the previous day’s surprise plan to double buybacks.Bessent, a former hedge fund m
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…
US Treasury vows bigger buybacks after bond yields erased relief rally
Long-term US Treasury yields climbed back above where they stood before Wednesday's buyback announcement, wiping out the relief that move had briefly delivered, and prompting US Treasury Secretary Scott Bessent to signal that Washington is ready to intervene even more aggressively.
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.
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