Longer-dated Treasury yields stabilize as bond buyback program loses momentum
Yields on 30-year and 10-year U.S. Treasury notes held steady on Friday, while investors remain wary of the Treasury's expanded debt repurchase plan and rising national debt.
U.S. Treasury yields on longer-dated securities showed little movement on Friday, reflecting ongoing market concerns about the Treasury Department's extended debt repurchase program and the country's growing debt burden. The 30-year Treasury note yield edged up less than one basis point to 5.246%, while the benchmark 10-year yield slipped marginally to 4.694%. The two-year note, which tracks short-term Federal Reserve policy, remained unchanged at 4.185%.
After a sharp rise of more than five basis points on Thursday, both the 10-year and 30-year yields retreated, erasing the previous day's decline that followed Treasury Secretary Scott Bessent's announcement of an accelerated repurchase effort aimed at easing pressure on the long end of the yield curve.
Willem Sels, global chief investment officer at HSBC Private Bank and Premier Wealth, said the recent rebound in long-term yields highlights worries that the Federal Reserve has become “less credible or predictable” under Chairman Kevin Warsh. He added, > "We think this concern should fade as the Fed decisions are committee-based, and policy will become clearer over time. So instead, it is the supply from U.S. hyperscalers and the U.S. government that are the key concerns currently," in a client note.