US Treasury Yields Climb as Buyback Falls Short of Maximum Target

• US Treasury yields rose despite an expanded $6 billion buyback program.
• The Treasury repurchased less than its maximum target, driving yields higher.
• 10-year yield hit 4.85%, 30-year reached 5.30%.

US Treasury yields advanced on Wednesday, with the 10-year note reaching 4.85%, the 20-year yield climbing to 5.31%, and the 30-year bond yield increasing to 5.30%. This rise occurred despite the US Treasury Department’s expanded program to buy back up to $6 billion in 10-to-20-year government debt, a move three times larger than previous operations and intended to support market liquidity [STORY_ID: f2f77458-8f17-4e57-bb36-435781981803]. Contrary to the typical expectation that such buybacks would support bond prices and lower yields, the market reacted with higher yields. This unexpected outcome was primarily attributed to the Treasury ultimately repurchasing fewer securities than the maximum amount outlined under Secretary Scott Bessent’s program.