30-Year Treasury Yields Bounce Back, Erasing Bessent’s Bond Buyback Gains

Long term US government bond yields have climbed right back to where they stood before Treasury Secretary Scott Bessent made a surprise move last month to calm the market.

Yields Snap Back to Pre-Intervention Levels

On Tuesday, 30 year Treasury yields rose past 5.28%, the same level seen before Bessent expanded the buyback program on August 19. Bank of America’s Mark Cabana said the rates market has failed to hold onto any real decline, since investors keep demanding more compensation to lend money for such a long stretch.

Shorter Bonds Feel the Heat Too

10 year yields touched 4.8%, the highest since January 2025. Two-year yields rose to 4.4%, with markets now pricing a 70% chance the Fed raises rates this month, its first hike since 2023.

A Global Bond Problem

Germany, the UK, and Australia are all seeing yields hit multi-decade or record highs, driven by inflation worries and heavy government borrowing worldwide.

Bessent brushed off the selloff, saying he’s comfortable with it. Pantera Capital’s Dan Morehead said the move may have backfired, comparing it to a bluff everyone at the table saw through.