Stock Market Today: 10-Year Treasury Yield Hits Multiyear High; Oil Touches $100

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1. 5d ago

   10-Year Treasury Yield Hits Multiyear High as Oil Touches $100

   US Treasury yields hit a 3-year high on Thursday, with the 10-year yield briefly climbing above 4.8% as oil prices reached $100. To counter market volatility and reduce borrowing costs, Treasury Secretary Scott Bessent tripled the department's long-dated debt buyback program to $6 billion for the September 10 operation. Despite this move, which Bessent stated was intended to quell market fever, investors reacted with disappointment, leading to a further jump in yields and a broader global bond sell-off.

   Why it matters

   The Treasury buyback program aims to stabilize the bond market by reducing the supply of older debt. This intervention comes amid rising energy costs and investor concerns over government borrowing levels. The effectiveness of these buybacks is currently being tested by persistent upward pressure on yields.

   What is confirmed

   • The US Treasury Department will buy back up to $6 billion in longer-term debt for the September 10 operation.
   • The 10-year Treasury yield briefly rose above 4.8%.
   • Oil prices touched $100.
   • The current $6 billion buyback is triple the normal level.
   • Bond yields reached a 3-year high.

   Still unconfirmed

   • Treasury Secretary Scott Bessent warned FX traders that he is now the house.
   • The global bond sell-off could be a sign of economic strength.

   What to watch next

   • The release of full details regarding Bessent's bond plan.
   • Market reaction to the completion of the September 10 buyback operation.
   Sources used for this update (16)

   1. Bloomberg.com — Bessent Says Buyback Move Was Aimed at Quelling Market ‘Fever’
   2. The Economist — What is causing the global bond sell-off?
   3. CNBC — 10-year Treasury yield briefly ticks back above 4.8% as oil prices rise
   4. CNBC — Treasury Department to buy back up to $6 billion in longer-term debt, triple the normal level
   5. Bloomberg.com — US Treasury Triples Long-Dated Debt Buyback to $6 Billion
   6. CNBC — Bessent bond plan details to be revealed as Treasury secretary warns FX traders he's 'the house now'
   7. Financial Times — US Treasury yields jump as plans for $6bn buybacks disappoint investors
   8. WSJ — Stock Market Today: 10-Year Treasury Yield Hits Multiyear High; Oil Touches $100 — Live Updates
   9. Reuters — US Treasury to buy up to $6 billion in Sept 10 buyback operation
   10. qz.com — Bond yields hit a 3-year high even as Scott Bessent triples Treasury's bond buyback plan
   11. The New York Times — Bond Market Rebuffs Treasury’s $6 Billion Plan to Reduce Borrowing Costs
   12. cnn.com — Bond yields rise after Treasury Department announces size of buyback operation | CNN Business
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