US Treasury Buyback Fails to Tame 20-Year-High Yields as Canada Tariffs Deepen Inflation Fears
Updated
Updated · observer.co.uk · Aug 24
US Treasury Buyback Fails to Tame 20-Year-High Yields as Canada Tariffs Deepen Inflation Fears
3 articles · Updated · observer.co.uk · Aug 24
Summary
Yields on US government debt resumed climbing by Friday after the Treasury’s buyback operation, while the dollar fell and investors shifted into gold, silver and cryptocurrencies.
The intervention—after the national debt topped $40 trillion and with buybacks set at at least $4 billion per operation—offered only brief relief because it did not address heavy borrowing, war-driven oil inflation or tariff pressure.
Brent crude rose above $94 a barrel, about one-third above its pre-war level, as fears grew that renewed US-Iran conflict could disrupt energy supplies and intensify the global bond sell-off.
Canada trade talks collapsed Friday, prompting retaliatory tariffs on roughly $20 billion of goods and adding fresh price pressure to US inflation, already above the Federal Reserve’s 2% target.
Scott Bessent says the Treasury has a "big toolkit" and could expand buybacks further, but analysts warn the market stress reflects deeper fiscal and geopolitical risks that could reverberate globally.