US Treasury yields rise despite Bessent’s US$6bn buyback expansion
The 10-year Treasury yield reached its highest level in nearly three years after investors reportedly found the enlarged repurchase programme disappointing.
US 10-year borrowing costs rose to their highest level in nearly three years despite the Treasury expanding its repurchase programme to US$6 billion, according to the Financial Times.
The operation covers 10- and 20-year notes and is intended to support liquidity and market functioning at the long end of the US government bond curve.
Treasury Secretary Scott Bessent reportedly pledged on 19 August to at least double the size of normal buybacks. The expanded operation was described as three times the usual size.
Investors nevertheless reportedly viewed the plan as disappointing. The supplied material does not specify why, and it does not provide the precise yield level or the operation’s ultimate effect on liquidity and borrowing costs.
