TLDR
- The 10-year Treasury yield climbed to 4.85%, its highest point since November 2023
- Treasury Secretary Scott Bessent announced a $6 billion long-term bond buyback plan
- Wall Street had expected buybacks of up to $10 billion, with some hoping for $7-8 billion
- The buyback covers bonds expiring in 10 to 20 years, with six more operations planned through early November
- Rising oil prices and Middle East tensions added further pressure on yields
The 10-year Treasury yield jumped to its highest level since 2023 after Treasury Secretary Scott Bessent announced a $6 billion bond buyback plan that came in below what many on Wall Street had hoped for.
You can’t make this up.
The US Treasury just announced it is tripling long-term buybacks to $6 billion and yields STILL rallied on the news.
That means the US Treasury went from doubling, to “at least doubling,” to tripling long-term bond buybacks and yields are still rising.… pic.twitter.com/WWWtwBpzVw
— The Kobeissi Letter (@KobeissiLetter) September 9, 2026
The yield on the 10-year Treasury note rose more than 3 basis points to 4.839%, briefly touching 4.85%. That matches its highest point since November 1, 2023, when it hit 4.935%.
The 30-year Treasury bond yield also moved higher, rising 3 basis points to 5.292%. The 2-year yield added more than 1 basis point to reach 4.415%.
The Treasury Department said it plans to buy a maximum of $6 billion worth of bonds expiring in 10 to 20 years. This is expected to be the same amount in each of the six remaining buyback operations through early November.
That compares to the previous guidance of “at least $4 billion,” announced in an August 19 press release. While the new figure is higher, it fell short of what many traders were counting on.
Wall Street Expected More
Strategists at Morgan Stanley and Jefferies had expected buybacks as high as $10 billion. Peter Boockvar of OnePoint BFG Wealth Partners said some expected $7 to $8 billion.
Mizuho Securities said Bessent is “facing an uphill battle, in terms of trying to move against the general momentum of the market.” Bond prices move inversely to yields, so rising yields signal a sell-off.
Bessent had spoken about the buyback program just a day earlier at SMU Cox School of Business, saying the plan was designed to make people “get out of their fever dream and look at the facts.” He had previously said on CNBC that the buybacks were meant to calm headline-driven volatility.
Oil Prices Add Pressure
Yields also rose alongside a surge in oil prices. Brent crude climbed above $100 per barrel for the first time since late July. West Texas Intermediate futures added more than 3%, trading above $96 a barrel.
The oil rally is tied to escalating tensions between the U.S. and Iran. Tehran said its forces struck two American vessels and eight oil tankers in the Gulf, in retaliation for the U.S. destroying five Iranian crude oil tankers.
Marc Ostwald, chief economist at ADM Investor Services, warned that high energy prices raise inflation risks while also threatening growth and demand.
The next bond buyback operation is scheduled for Thursday.
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