Traders Watch Bessent’s Bond Buyback Plans as 2-Year Treasury Yield Climbs to 4.23%
Updated
Updated · Bloomberg · Aug 22
Traders Watch Bessent’s Bond Buyback Plans as 2-Year Treasury Yield Climbs to 4.23%
3 articles · Updated · Bloomberg · Aug 22
Summary
Short-dated Treasuries led a Friday selloff, pushing the two-year yield up 4 basis points to 4.23% and the 10-year up 3 basis points to 4.74%.
Business activity grew at its fastest pace in more than four years, reinforcing expectations for interest-rate hikes and adding pressure across the bond market.
That move left traders heading into the weekend focused on whether Treasury Secretary Scott Bessent will adjust buyback plans after a turbulent stretch for government debt.
The debate centers on how much support the Treasury can provide if yields keep rising, with uncertainty also hanging over whether the Federal Reserve would step in.