US ultra-long-term Treasury yields continued to rise, returning to levels seen just before Treasury Secretary Bessent announced a more than doubling of the cap on long-term bond buybacks. The 30-year yield climbed above 5.28%, pushing back to pre-intervention levels. This move indicates that more than temporary buyback adjustments are needed to reassure investors concerned about the rapidly growing national debt and persistently high inflation. Mark Cabana of Bank of America noted that the rates market cannot sustain any significant decline in yields, and investors are demanding maximum compensation for long-dated bonds.
Yields rising back to pre-intervention levels indicates market skepticism about Treasury buyback effectiveness, pressuring bond prices.
