US Treasury Secretary Praises Government's Bond Buyback Success
Scott Bessent, the US treasury secretary, hailed a recent government bond buyback as successful despite rising 10-year treasury yields reaching their highest level since 2007. The yield hit 5.041% on September 15, 2026, driven by inflation concerns and geopolitical tensions in Iran affecting energy prices. In response to the surge in bond yields starting in August, the US government increased its buyback of debt from $2 billion to $6 billion per week. Bessent testified before Congress that these efforts were among the most successful treasury auctions in 20 years. The administration also intervened earlier this month to support the Japanese yen, a key holder of US bonds. Meanwhile, inflation has remained elevated at around 3.4%, setting up potential for another Federal Reserve interest rate hike as it meets on September 16. The rising yields and inflation pressures are expected to influence upcoming midterm elections and continue challenging monetary policy decisions.
