Bessent Doubles Treasury Buybacks as 10-Year Yield Holds Near 4.74%

3 articles · Updated · CNBC · Aug 24

Scott Bessent last week expanded Treasury purchases of less-liquid government debt to lean against rising long-term yields, but the market quickly reversed the initial drop.
The move came as heavy government and corporate borrowing—led by an AI buildout targeting roughly $2 trillion in computing capacity by end-2027—pushed financing costs to multiyear highs.
Even so, the latest bond selloff was relatively contained: the 10-year yield rose just 4 basis points last week to 4.74%, while investment-grade corporate spreads stayed tight.
Higher rates are biting unevenly across the economy, with July housing starts down 12.4% and Walmart posting its weakest comparable-sales growth since 2020 even as unemployment stays low.
Stocks remain near record highs because AI infrastructure companies drive about a third of recent S&P 500 earnings growth, though last week's rate scare knocked the index down 1.4%.