Markets live: US Treasury yields rise to session highs after Scott Bessent’s buyback operation undershoots target

Live updates

1. 4d ago

   US Treasury yields climb after $6 billion buyback operation

   US Treasury yields reached session highs following a $6 billion buyback operation intended to lower borrowing costs. Bond markets sold off despite the Treasury Department's efforts. Scott Bessent dismissed concerns regarding the operation and maintained that Treasuries remain strong. Separately, the European Central Bank raised interest rates while warning of upside risks to inflation.

   Why it matters

   The Treasury uses buybacks to manage debt and reduce borrowing expenses. Market reactions to these operations signal investor confidence in government debt stability. The simultaneous ECB rate hike adds pressure to global bond markets.

   What is confirmed

   • The Treasury Department conducted a $6 billion buyback operation to reduce borrowing costs.
   • Bond yields rose following the announcement of the buyback operation size.

   Still unconfirmed

   • Scott Bessent claims Treasuries are strong and dismisses concerns over the buyback.
   • The European Central Bank raised rates and warned of upside risk to inflation.

   What to watch next

   • Further comments from Scott Bessent on Treasury stability
   • Market reaction to the ECB rate hike implementation
   • Upcoming Treasury buyback schedules
   Sources used for this update (5)

   1. The New York Times — Bond Market Rebuffs Treasury’s $6 Billion Plan to Reduce Borrowing Costs
   2. cnn.com — Bond yields rise after Treasury Department announces size of buyback operation | CNN Business
   3. Financial Times — ECB rate decision live: central bank warns of ‘upside risk’ to inflation as it raises rates
   4. WSJ — Bonds Sell Off Despite Buyback Operation
   5. Bloomberg.com — Bessent Dismisses Concern on Buyback, Says Treasuries Are Strong
   confidence 90%