Buyback backfire: Bond yields are surging despite the Treasury's $6 billion plan to lower them

The US Treasury's plan to buy back $6 billion in long-dated bonds has led to a rise in bond yields, contrary to its intended effect. The 10-year Treasury yield reached 4.85%, its highest since 2023, while 20- and 30-year yields climbed to about 5.29%. Markets interpreted the buyback details as insufficient to lower borrowing costs. Treasury Secretary Scott Bessent announced the move as part of efforts to manage government debt levels.

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