Bessent's Bond Market Calming Efforts Fall Short

Treasury Secretary Scott Bessent's efforts to calm the bond market have not had the desired effect so far. Despite his announcement that the Treasury would double the size of a bond buyback program, interest rates rebounded on Thursday.

The yield on the 10-year Treasury note, a key benchmark for mortgage rates, rose back to 4.69% on Thursday, nearly where it stood early Wednesday before Bessent's announcement.

Bessent had said that the bond repurchase program could be larger than $4 billion and that he believes the yields do not reflect the underlying fundamentals.

The rise in rates has put pressure on Federal Reserve Chair Kevin Warsh to clarify his approach to containing inflation when he delivers a high-profile speech next Friday at an annual Fed conference in Jackson Hole, Wyoming.