Anleihen: Bessent versucht Anleihemärkte zu beruhigen – und kündigt Rückkaufprogramm an

Just a day after a significant rise in yields on US Treasury bonds, Finance Minister Scott Bessent astonished with an offensive. The US government doubled the volume of its buybacks from two to at least four billion dollars, driving bond prices higher and lowering yields, which move inversely. The announcement came unexpectedly, only two weeks after the regular buyback plan for the current quarter was released.

The buyback program affects securities with maturities ranging from ten to 30 years. Finance Minister Bessent had already designated the buyback program as part of a "big toolbox" the ministry could use to address problems in the bond market the previous year. Now, the tool is being put into action. Since 2007, 30-year Treasury bonds had hit their highest point at 5.34 percent.

In response, the yields drop by eight basis points, settling at 5.2 percent on Wednesday. Wall Street benefits from Bessent's attempt to calm bond markets. Major indices start trading on Wednesday in the plus. Rising bond yields have recently burdened markets by increasing financing costs for companies and governments. Bonds also become more attractive as an investment class when they offer higher yields.

Market observers view the step as a clear signal. "The timing is no coincidence," said John Briggs, interest rate strategist at Natixis North America. "When yields rise too far, the Finance Ministry will counteract – and now we know where the pain points are." Krishna Guha, banking expert at investment bank Evercore ISI, called Bessent an "activist Finance Minister" who has again demonstrated his tactical skills.

The move came unexpectedly and has caught investors betting on further rising yields at the wrong foot. In the short term, Bessent has undoubtedly achieved the desired effect. However, Guha in a recent analysis doubts that the measure will have a noticeable impact over the longer term.