Long-term US Treasury yields have surged, with 10-year yields topping 4.7% as Federal Reserve minutes point toward possible rate hikes. In response, the Treasury expanded long-bond buybacks, including a surprise plan to double the repurchases.
Despite the announcement, yields climbed back above the levels seen before the buyback plan, wiping out the brief relief the move had delivered. The government debt market began to balk, prompting US Treasury Secretary Scott Bessent to signal that Washington is ready to intervene even more aggressively.
Bessent stated on Thursday that he may further increase the government's repurchases of Treasuries to jawbone the market. He noted that these increased buybacks could be more than $4 billion per issue.
Additionally, Bessent said his department is going to make a market in the longer-dated securities where yields have been surging lately.