Bessent’s bond gains erased as US 30-year yield jumps, global yields hit multi-year highs
Pressure also extended to long-dated bonds around the world
US 30-year Treasury yields surged past 5.28 per cent on Tuesday, the level last seen before Treasury Secretary Scott Bessent expanded a buyback program in August to curb the rise. This indicates that the pressure on long-dated bonds has persisted, signaling that a single tweak to the US Treasury's buybacks is insufficient to alleviate concerns over the growing national debt and high inflation.
The yields on 10-year Treasuries also jumped to their highest level in 18 months, while two-year yields rose to about 4.4 per cent, reflecting the market's demand for substantial compensation to hold bonds for such long periods. The sell-off extended to other global markets as well, with Germany's 30-year yields reaching a 2011 high and the UK rate hitting a level not seen since 1998.
Australian yields also set a new record high. Despite Bessent's efforts to convince the market that the intervention was necessary, the bond market remains skeptical, with the US yields remaining elevated and creating challenges for the Treasury Secretary, who has promised a "big toolkit" to manage yields.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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