Long-term US Treasury yields climbed back above levels seen before Wednesday's buyback announcement, erasing the initial relief rally and prompting Treasury Secretary Scott Bessent to signal readiness for even more aggressive intervention. The 30-year yield traded at 5.25% after hitting 5.33% on Tuesday, while the 10-year sat at 4.7% after topping 4.75%, after the Treasury doubled its buyback cap to at least $4 billion per operation.
Bessent announced an increased focus on fiscal consolidation, with details expected imminently, as US national debt crossed a record $40 trillion. President Donald Trump told reporters at the White House that there was no need to worry about bond market movements, saying the country was "doing very well."
Global borrowing costs have spiked in recent months due to higher oil prices from the US-Iran war disrupting supplies, while a lack of progress on reopening the Strait of Hormuz has added to market unease. Rising yields dragged Wall Street lower, with all three major US stock indices falling on Thursday.