The 10-year US Treasury yield hovered around 4.7% on Friday, after a sharp rebound in the previous session, as investors questioned whether the government’s strategy to lower borrowing costs would deliver more than a short-lived reprieve. The 30-year yield also climbed to roughly 5.25%, almost fully reversing Wednesday’s drop that followed the US Treasury Department’s announcement of expanded debt buyback operations.
Those moves came even after Treasury Secretary Scott Bessent indicated that the pace of buybacks could surpass the previously signaled $4 billion per issue and pointed to an upcoming fiscal plan, while noting that the US budget deficit has likely already peaked under President Donald Trump.
Longer-dated Treasury yields have been rising steadily since July, driven by heavier debt issuance by AI-related companies and widening federal deficit spending. At the same time, higher oil prices—amid preparations by the US to impose sweeping new economic sanctions on Iran—have intensified market concerns about inflation.
