On Thursday morning, bond yields rose after a sharp decline the previous day, triggered by the Treasury Department's decision to double its debt repurchases, particularly targeting long-term securities. The yield on 30-year U.S. Treasurys increased by 3 basis points to 5.2256%, while the 10-year yield rose 1 basis point to 4.6723%. The 2-year Treasury note yield remained steady at 4.1727%.
This announcement, led by Scott Bessent, was significant as it came at a time when total U.S. government debt surpassed $40 trillion, more than double the amount from a decade ago. The prior day's buyback plan had caused yields to drop sharply, with the 30-year yield falling over 10 basis points and the 10-year yield declining more than 6 basis points.
The broader context includes ongoing concerns about inflation, which remains above the Federal Reserve's 2% target, as indicated by recent economic data and the release of the Federal Open Market Committee minutes from July. The increase in yields reflects market reactions to these developments and the ongoing volatility in the bond market