FX.co ★ US Treasury Yields Rise as Buyback Relief Fades

US Treasury yields jumped on Thursday, erasing the rally sparked earlier by Treasury Secretary Scott Bessent’s announcement of larger buybacks of long-dated government debt. The 30-year yield rose seven basis points to 5.26%, returning to its pre-announcement level, while the 10-year yield climbed to 4.71%, near its highest point since early 2025.

The swift reversal underscores investors’ doubts that the Treasury’s expanded buyback programme can deliver lasting relief from elevated borrowing costs. Under the plan, the Treasury will at least double its liquidity-support purchases of securities maturing between 10 and 30 years. However, persistent concerns over large fiscal deficits, sticky inflation and substantial borrowing requirements continue to weigh on longer-dated Treasuries.

Rising oil prices are amplifying inflation risks, while increased issuance tied to the boom in artificial-intelligence-related investment is adding further pressure on the supply of longer-term bonds.