{
  "id": 3470177,
  "title": "Treasuries rally as falling oil eases inflation concerns and Bessent pressure",
  "url": "https://urgent.news/2026/08/26/treasuries-rally-as-falling-oil-eases-inflation-concerns-and-bessent",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-26T08:35:16.000Z",
  "source": {
    "name": "Hedgeweek",
    "slug": "hedgeweek",
    "url": "https://www.hedgeweek.com/treasuries-rally-as-falling-oil-eases-inflation-concerns-and-bessent-pressure/"
  },
  "original_language": "en",
  "account": "US Treasuries experienced a rally on Tuesday as a significant drop in oil prices helped alleviate inflation concerns, according to Bloomberg. Treasury Secretary Scott Bessent found relief after enduring months of escalating long-term borrowing costs. Yields on Treasury bonds declined by approximately five to seven basis points across the curve, fueled by a more than 4% decline in Brent crude oil prices and robust demand for a two-year note auction. This shift has driven the 30-year Treasury yield down by around 12 basis points to 5.16% since Bessent announced plans to double the government's purchases of longer-dated debt last week. The Treasury's unexpected buyback program has offered temporary support for the bond market by signaling Washington's readiness to reduce the supply of long-term debt and intervene as yields climb. Nevertheless, investors remain doubtful that the purchases can counterbalance the underlying factors driving Treasury yields upward. Inflation remains high, and worries about the US fiscal deficit and expanding government debt continue to exert downward pressure on the market. Despite Bessent's intervention, some, like former mentor Stanley Druckenmiller, view the strategy as misguided, asserting that governments' attempts to prop up asset prices against fundamental realities are unlikely to succeed. The Treasury's rally was also bolstered by falling energy prices, with expectations of de-escalation in the Middle East tempering crude demand. Brent crude fell over 4% after reports emerged that the US was planning to reintroduce diplomats to embassies in the region, hinting that the Trump administration does not anticipate a full-scale conflict with Iran and is instead focusing on economic sanctions. While oil prices have not yet returned to pre-war levels, keeping inflation risks elevated, higher energy costs have added to the pressure on a Treasury market already grappling with substantial government issuance and additional borrowing by technology firms seeking to fund artificial intelligence infrastructure. Bessent has set lower 10-year Treasury yields as one metric to evaluate the success of his policies. His attempts to curb rising borrowing costs have included various unconventional measures; however, investors are skeptical about the Treasury's capacity to maintain control over yields in the long run.",
  "summary": "TOP STORY: US Treasuries rallied as a sharp decline in oil prices helped ease inflation fears, giving Treasury secretary Scott Bessent some relief after months of rising long-term borrowing costs, according to a report by Bloomberg.",
  "key_points": [
    "US Treasuries rally as oil prices fall, easing inflation concerns",
    "Treasury Secretary Scott Bessent relieved after long-term borrowing costs ease",
    "Bessent's buyback program offers temporary support, but doubts remain about effectiveness"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}