The US Treasury, led by Scott Bessent, made its first larger-scale buyback of long-term government bonds on September 10, scooping up $5.2 billion worth. Despite the size of the move, the selloff in 10-year Treasurys kept rolling.

10-Year Yields Surge

Right after the buyback results dropped, 10-year bond yields shot above 4.85%—the highest level since 2023. By September 11, yields were closing in on 4.98%.

Buyback Fails to Shift Market Mood

The long-bond buyback didn’t put a lid on rising yields, showing that sellers are still in control of the 10-year space. Even with the Treasury’s intervention, the US government bond market remains under heavy pressure.

The Breakdown

— Date: September 10.
— Buyback size: $5.2 billion in long-term bonds.
— Market reaction: 10-year yields jumped past 4.85% and nearly hit 4.98% on September 11.