Treasury Secretary Warns Bond Traders but Yields Continue to Rise
U.S. Treasury Secretary Scott Bessent has issued a warning to bond traders, asserting that the government will defend longer-term yields through buybacks and coordination with Japan's monetary policy. Despite these assurances, 10-year and 30-year Treasury yields hit year highs of 4.83% and 5.28%, respectively, on September 9, as market forces continue to push rates higher. The recent $6 billion buyback program for longer-dated bonds was seen by traders as insufficient given the scale of U.S. debt and Treasury markets. Private-sector capital demand is also crowding out government borrowing, with companies like NVIDIA and Microsoft investing heavily in infrastructure and capex projects that draw investor funds away from Treasuries. Meanwhile, rising oil prices and persistent inflation are contributing to higher yield expectations as investors price in continued economic uncertainty.
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Topics: bond traders buybacks government debt Treasury yields