Bessent's Bond Gains Wiped Out as 30-Year Yields Jump Again
Yields on the longest-dated U.S. government bonds have rebounded to levels seen before Treasury Secretary Scott Bessent’s surprise buyback program expansion in late August, which had briefly calmed markets. The recent selloff resumed by mid-September pushed 30-year yields above 5.28%, signaling that investors remain deeply concerned about rising national debt and persistent inflation. Global bond markets also experienced pressure as long-dated bonds across Europe and Australia hit multi-decade highs in yield. Bessent has downplayed the selloff, calling it a reflection of market dynamics rather than an emergency situation. However, analysts argue that his intervention failed to provide lasting relief due to broader economic concerns such as oil-driven inflation shocks and large government deficits. The Federal Reserve is also under pressure to raise rates again after two years without hikes, with traders pricing in about a 70% chance of a rate increase at the upcoming meeting. The Trump administration has long aimed to reduce borrowing costs through lower yields but its policies—such as tax cuts and increased spending—have contributed to rising deficits. Market participants are skeptical that Bessent’s tools can effectively counter these macroeconomic pressures.
Tickers: $BAC
Topics: 30-year bond yields Federal Reserve policy inflation concerns Treasury buybacks