U.S. Treasury expands $6 billion bond buyback as yields climb
U. S. Treasury Secretary Scott Bessent defended a $6 billion long-term bond buyback on 11 September, saying investors were not demanding a premium for longer-dated debt even as yields continued to climb. Reuters reported that on 2 September the Treasury announced a repurchase of up to $6 billion of 10- to 20-year securities, three times its previous limit. Fox Business said the move pushed yields on the 10-year note above 4. 85% and on the 20-year bond above 5. 3%. Euronews noted investors viewed the buyback as smaller than expected, sending long-term yields to near three-year highs.
NBC News observed the program triggered a surge in yields and a decline in equity markets, showing the limits of the administration's market influence. Previously, the Treasury had coordinated a yen-purchase operation with Japan before announcing the buyback, according to Currently. com. Earlier analysts warned that record government and tech-sector debt supplies were lifting yields to multi-year highs (Yahoo Finance) and that the 30-year Treasury yield hit 5. 27%, its highest since 2007 (AlterNet). Rising oil prices above $100 a barrel and expectations of a near-term Federal Reserve rate hike later pushed the 10-year yield close to 5% (Reuters). Net interest costs reached a record 18. 5% of revenue in 2025, Fortune reported.
