Bond market rebuffs US treasury’s plan to buy back $6bn in government debt
News Source
•Wed, 09 Sep 2026 19:32:08 GMT
📰 What Happened
The US Treasury tried to calm the bond market on Wednesday, but buyers were not impressed. Treasury Secretary Scott Bessent announced a plan to buy back $6 billion of government bonds. The goal was to stop a selloff that has been pushing interest rates up.
Instead, bond yields kept climbing. The yield on 10-year treasuries rose to a three-year high, and the 30-year bond hit about 5.2 percent, its highest since the 2008 financial crisis. Rising inflation and the war with Iran have made investors nervous about US debt.
🔍 The Backstory
US government bonds, called treasuries, are normally seen as one of the safest investments in the world. When investors sell them, their price falls and their yield, or interest rate, rises. That pushes up borrowing costs for everyone, from home buyers to big companies.
To support the market, the Treasury said in August it would at least double its usual buyback program. Buying back bonds removes them from the market, which should push prices up and yields down. So far the plan has not worked, and yields have kept rising.
🎯 Why It Matters
Bond yields decide how much it costs to borrow money. When they rise, mortgages, car loans and credit cards get more expensive. A nervous bond market can also shake stock prices and retirement savings.
The US Treasury tried to calm the bond market on Wednesday, but buyers were not impressed. Treasury Secretary Scott Bessent announced a plan to buy back $6 billion of government bonds. The goal was to stop a selloff that has been pushing interest rates up.
Instead, bond yields kept climbing. The yield on 10-year treasuries rose to a three-year high, and the 30-year bond hit about 5.2 percent, its highest since the 2008 financial crisis. Rising inflation and the war with Iran have made investors nervous about US debt.
US government bonds, called treasuries, are normally seen as one of the safest investments in the world. When investors sell them, their price falls and their yield, or interest rate, rises. That pushes up borrowing costs for everyone, from home buyers to big companies.
To support the market, the Treasury said in August it would at least double its usual buyback program. Buying back bonds removes them from the market, which should push prices up and yields down. So far the plan has not worked, and yields have kept rising.
Bond yields decide how much it costs to borrow money. When they rise, mortgages, car loans and credit cards get more expensive. A nervous bond market can also shake stock prices and retirement savings.