The Treasury Department's efforts to calm the bond-market selloff haven't yet worked as well as hoped, with long-term yields remaining near multi-decade highs. Treasury Secretary Scott Bessent outlined plans to buy more long-dated Treasurys this fall and promised to use the agency's large tool kit to support the market, but the 30-year Treasury yield was at 5.24% Monday, still near its 19-year high, and the 10-year yield was at 4.71%, near its one-year high. Portfolio manager Tracy Chen of Brandywine Global said Bessent failed to cap long-term Treasury yields and that bond vigilantes still don't believe him. The Treasury's buybacks can help ease pressure by improving liquidity, but they won't address the core issue of financing a massive and growing debt load, with the nearly $1.8 trillion federal budget deficit so far this fiscal year reinforcing the borrowing need. Net interest payments on the national debt are expected to surpass $1 trillion for the 2026 fiscal year, while higher oil prices and more military spending brought on by the Iran war have fueled renewed inflation anxiety.
Compass IncTreasury intervention fails to calm long-term yields; 10-year yield near one-year high
Treasury intervention fails to cap long-term yields; 30-year yield near 19-year high
