Bond Market Resists Treasury's Efforts to Curb Yields

U.S. Treasury Secretary Scott Bessent has been trying to calm the bond market by announcing larger-than-expected bond buybacks, but his efforts so far have not had a lasting impact.

The yield on the 10-year Treasury note rose back to 4.69% Thursday after initially falling following Bessent's surprise announcement that the Treasury would double its bond buyback program from $2 billion to $4 billion per operation starting next month.

Bond investors remain concerned about growing government debt and heavy borrowing by tech firms, which has driven up yields on longer-term bonds. The yield on the 30-year bond rose to 5.23%, down only slightly from a 19-year high reached Tuesday.

The Treasury market is massive, with the U.S. government expected to issue nearly $550 billion in bonds this quarter to finance its operations. Bessent's intervention appears to be at cross-purposes with Fed Chair Kevin Warsh's goal of letting financial markets set interest rates based on economic conditions.