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Longer-dated Treasury yields hold steady after Bessent's bond buyback rally fizzles out
CNBC • • general
Key Points:
- Longer-dated U.S. government bond yields remained steady on Friday amid investor concerns over the Treasury Department's extended debt repurchase program and rising national debt levels.
- The 30-year Treasury note yield rose slightly to 5.246%, while the 10-year yield dipped marginally to 4.694%, and the 2-year yield held steady at 4.185%.
- Borrowing costs surged sharply on Thursday, with 10-year and 30-year yields increasing over 5 basis points, reversing previous declines following Treasury Secretary Scott Bessent's announcement of increased bond repurchases.
- HSBC's Willem Sels noted that the rebound in long-term yields reflects market doubts about the Federal Reserve's credibility and predictability under Chairman Kevin Warsh, though he expects these concerns to diminish as policy clarity improves.
- Sels emphasized that current market focus is more on supply pressures from U.S. tech giants and government debt rather than Federal Reserve actions.
