US Treasuries Erase Buyback Gains

2026-08-20 13:37 By Andre Joaquim 1 min. read

Long-maturity Treasury yields rebounded on Thursday to erase the drop after the Treasury Department announced its larger bond and note buyback.

The yield on the 10-year note rose to 4.7%, 5bps away from the 20-month high this week, and that on the 30-year bond rose to 5.25%.

The Treasury stated it would at least double its long-maturity buybacks to $4 billion next quarter, adding to its efforts of compressing yields after the joint intervention on the Japanese yen by selling euros and the request for the Fed to increase the limit on its FIMA facility.

Yields on the longer end of the curve had surged since July amid soaring debt issuance from AI companies and higher deficit spending by the federal government.

Long-term yields also rose after Fed Chairman Warsh signaled that a rate hike may not be his preferred tool to combat higher inflation.

Concerns of unanchored inflation were magnified by elevated energy prices during the US-Iran blockade of tankers in the Persian Gulf.



News Stream
US 10-Year Yield Holds at 19-Year High
The yield on the 10-year US Treasury note rose to around 5.2% on Monday, staying at its highest level since July 2007 as expectations strengthened that the Federal Reserve will tighten monetary policy further to contain inflation. Data released Friday showed new orders for key US manufactured capital goods rose more than anticipated in August, pointing to another quarter of solid growth in business spending. The University of Michigan’s consumer sentiment survey also confirmed a sharp increase in inflation expectations in September. Markets are currently pricing in roughly a 66% probability of a Fed rate hike in October. Investors now await the Fed’s preferred inflation gauge and key US jobs data this week for additional guidance. Adding to concerns, Treasury Secretary Bessent’s efforts to contain long-term yields through increased Treasury buybacks are widely viewed as having had limited effect.
2026-09-28
Treasury Yields Remain at Multi-Year Highs
The US 10-year Treasury yield hovered around 5.2% on Friday, near its highest level since mid-200. Traders refocused on hawkish comments from Fed officials, while a lack of concrete progress in US-Iran negotiations to end the conflict continued to fuel concerns about inflation. Meanwhile, the University of Michigan’s consumer sentiment survey confirmed a sharp rise in inflation expectations in September. Strong US economic data, worsening fiscal conditions and rising government debt have also weighed on the Treasury market. Adding to woes, efforts by Treasury Secretary Bessent to cap long-dated yields through increased Treasury buybacks are widely seen as having had limited impact. Investors currently expect the Fed to raise the federal funds rate by 25bps next month, with the probability of such a move standing at around 66%.
2026-09-25
Treasury Yields Edge Lower But Remain at Multi-Year Highs
The yield on the 10-year US Treasury note fell to 5.17% on Friday, following a sharp sell-off over the previous three sessions that pushed the benchmark yield up 23bps to around 5.20%. A decline in oil prices, amid signs that US and Iranian negotiators may be exploring a phased agreement to reopen the Strait of Hormuz, provided some relief to the bond market. Despite the modest pullback, borrowing costs remain at 2007 highs, as markets continue to price in expectations that the Federal Reserve will need to tighten monetary policy further. The odds of another 25bps rate hike at the Fed’s next meeting currently stand at around 70%, while swaps are pricing in three additional quarter-point rate increases over the next year. Strong economic activity and concerns over the fiscal outlook have also weighed on Treasuries. While demand at Tuesday’s 2-year Treasury auction was robust, the 5-year Treasury auction drew unexpectedly weak demand.
2026-09-25