US long-term bond yields spike to three-year highs after Bessent buybacks
US long-term bond yields jumped to three-year highs Wednesday. The move followed Treasury Secretary Scott Bessent’s bond buybacks, which “failed to impress markets,”.
US long-term bond yields jumped to three-year highs on Wednesday after Treasury Secretary Scott Bessent’s bond buybacks failed to impress markets. Borrowing costs rose partly because investors had expected a larger intervention, according to a Deutsche Bank strategist quoted. Evercore ISI analysts said the smaller-than-expected move points to a limited role for buybacks, while a Société Générale researcher said buybacks are unlikely to reverse yields without addressing the direction of the debt and deficit. Bessent is also managing other interventions, including yen purchases, and said on Tuesday, “I have asymmetric information.
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