Longer-dated Treasury yields rise as Bessent's bond buyback rally fizzles out — SkimNews
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- 30-year and 10-year Treasury yields rose more than 3 basis points Friday to 5.273% and 4.732% respectively, after both jumped more than 5 basis points Thursday alone — fully erasing the Wednesday rally triggered by Bessent's buyback ramp-up.
- 2-year Treasury yield climbed more than 4 basis points to 4.234%, up from about 4.10% a week ago, showing yield pressure is not isolated to the long end.
- Treasury Secretary Scott Bessent ramped up long-end debt repurchases on Wednesday to ease pressure at the back end of the curve, but the gains were wiped out within two sessions as jitters over the extended program and soaring national debt returned.
- Fed Chair Kevin Warsh's upcoming speech at the Jackson Hole Economic Policy Symposium is now the focal point, with Arca's Paul Stanley arguing that Warsh wants the bond market to do the Fed's tightening for it — which he said is exactly what the recent yield surge reflects.
- Traders also await the personal consumption expenditures price index release scheduled for next Wednesday.
Why it matters: The Treasury's failed buyback rally exposes the limits of supply-side intervention against structural concerns over extended debt repurchases and soaring national debt. With the 10-year benchmark — the reference for mortgages, auto loans and credit card rates — back at 4.732% versus 4.63% a week ago, borrowing costs face renewed upward pressure going into Warsh's Jackson Hole remarks.
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