Bessent Defends Treasury Buybacks as 10-Year Yield Tops 5%
Updated
Updated · The New York Times · Sep 15
Bessent Defends Treasury Buybacks as 10-Year Yield Tops 5%
3 articles · Updated · The New York Times · Sep 15
Summary
Scott Bessent told House lawmakers the Treasury’s debt buybacks last week worked, arguing yields would have risen even more without the intervention.
The defense came as the 10-year Treasury yield climbed above 5% on Tuesday, its highest level in 19 years despite the market support operation.
Democrats used the hearing to press Bessent on still-high living costs and borrowing rates, while he blamed inflation on the Biden administration and cast the economy as recovering under Trump.
Bessent also backed Trump’s proposed $5,000 dividend if Republicans keep Congress, but offered no funding details for a plan critics say could add more than $1 trillion to the debt and fuel inflation.
As global conflict pushes Treasury yields to 19-year highs, can any financial tool truly shield consumers from the soaring costs of war?
Will the Treasury’s multi-billion dollar debt buybacks actually calm markets, or quietly trigger widespread investor panic over the $40 trillion debt?
Could the alarming 5 percent yield threshold secretly signal an upcoming economic boom rather than the catastrophic financial crisis everyone fears?
The 5% Treasury Yield Crisis: Debt, Inflation, and the 2026 Financial Shockwave
Overview
In September 2026, U.S. Treasury yields surged past 5% after months of pressure from war in Iran, high inflation, rising oil prices, tariffs, and heavy tech borrowing for AI. This spike raised the hurdle rate for stocks, slashed high-growth valuations, and froze the housing market as mortgage rates jumped. Treasury buybacks failed to calm markets, as the government’s massive $40 trillion debt and $1 trillion annual interest bill crowded out private investment, pushing borrowing costs even higher. Investor confidence was shaken further by costly political proposals, while new financial tools like stablecoins quietly absorbed government debt, highlighting deep systemic risks.