Treasury Yields Recover Pre-Buyback Levels Amid Rising Global Bond Yields

Global bond yields have reached fresh highs due to firmer crude oil prices and higher expected policy rates from major central banks. This has led to 30-year US Treasury yields returning to pre-buyback levels.

The USD/JPY pair has largely retraced its post-intervention slump, following the joint US-Japan intervention on July 31.

Treasury Secretary Scott Bessent framed buybacks and yen intervention as signals rather than attempts to dictate market prices. He aimed to convey that market participants should consider fundamentals and not assume one-way markets.

While neither guarantees a reversal, both the yield cap and intervention raise the cost of betting against Treasuries or the Japanese Yen (JPY).