US Treasury doubles long-bond buybacks as yields near 2007 highs
What's new: The initial drop in yields faded, while 10-year inflation expectations climbed to 2.34%, signaling fresh market unease.
The US Treasury moved to at least double its liquidity-support buybacks for securities in the 10-year to 30-year range after long-dated yields climbed to their highest levels since before the financial crisis. Treasury Secretary Scott Bessent's move briefly pushed the 30-year yield down by as much as 10 basis points and weakened the dollar to a three-month low. But the relief did not last. By Thursday, the 10-year yield had risen to 4.73% and the 30-year to 5.27%, above levels seen before the buyback move. Market-based inflation expectations also rose, with the 10-year breakeven rate reaching 2.34%, a more than two-month high, underscoring investor concern that the intervention may not ease broader debt and inflation pressures.