US bond yields jump to 4.85% as Treasury buyback hike to $6 billion fails to stabilize market
Treasury Secretary Scott Bessent raised the government's longer-dated bond buyback target to up to $6 billion, but bond yields continued to climb despite the intervention.
Scott Bessent announced on Wednesday that the US Treasury plans to purchase up to $6 billion of longer-dated bonds. This figure superseded earlier targets of $2 billion and $4 billion proposed by his office. The move aimed to increase market liquidity at less liquid ends, yet bond yields did not fall as expected. Instead, the yield on the benchmark 10-year notes rose from 4.79 percent to 4.85 percent by Wednesday's session. This mark represents the highest level for 10-year yields since 2007, with only a brief exception in late 2023 when they nearly reached 5 percent. Bessent has stated these rises do not reflect underlying market fundamentals, noting yields were at 3.94 percent on February 27 before geopolitical tensions escalated. The administration intends for the buyback to commence on Thursday US time. The Treasury Secretary acknowledged that even the US government cannot fight the bond market against rising interest rates.
