Treasury Bond Yields Rise Again as Bessent's Buyback Plan Loses Early Gains

US Treasury yields moved higher for a second consecutive day, giving back most of the gains made after the Treasury Department announced an expansion of its bond-buyback program, Claire Boston reported for Yahoo Finance.

US Treasury yields have risen again after the initial market reaction to Treasury Secretary Scott Bessent's expanded bond-buyback program faded. [Photo: Addy Cameron-Huff Flickr]

The 30-year Treasury yield rose more than 2 basis points to nearly 5.28% in afternoon trading, moving back toward the 5.3% level that had unsettled markets earlier in the week.

The 10-year yield rose more than 3 basis points to above 4.73%.

On Wednesday, the Treasury Department said it would “at least double” the amount of 10-year, 20-year and 30-year Treasury securities it buys back.

A day later, Treasury Secretary Scott Bessent indicated that the department could expand the purchases further.

The expanded operation is scheduled to begin Sept. 9 and continue through Nov. 4.

Bond-market investors have questioned whether Treasury's purchases will be sufficient to push longer-term yields sustainably lower.

Factors outside the Treasury's direct control—including inflation concerns, uncertainty over Federal Reserve policy and heavy corporate debt issuance—have also contributed to higher yields.

BNP strategists led by Guneet Dhingra said the measures could struggle to offset concerns about Federal Reserve credibility and rising rate expectations.

The Treasury's strategy has also complicated the policy environment for Federal Reserve Chairman Kevin Warsh.

Higher long-term yields had been tightening financial conditions and increasing borrowing costs, while the Treasury's purchases are intended to provide support to the longer-term bond market.