US long-term Treasury yields rose again on Thursday, wiping out the market effect of Treasury Secretary Scott Bessent’s recent bond buyback initiative within a single day, according to 日本経済新聞.
The move marks a swift reversal of the brief relief the buyback plan provided to bond markets. Bessent had announced the measure as a way to address elevated long-term yields, but the impact proved short-lived, the Japanese business daily reports.
In a related statement, Bessent argued that the recent rise in yields does not reflect underlying economic fundamentals, even as he signaled plans to expand the scale of the Treasury buyback program, according to Reuters. His comments came as market participants continued to weigh the effectiveness of the intervention.
The yen also showed renewed weakness, with the dollar recovering to the upper 159 range in New York trading, according to みんかぶ FX/為替. The rebound followed a pause in dollar selling and persistent yen depreciation pressure.
Analysts remain skeptical about the durability of Bessent’s approach. Takashi Yamawaki, head of bond research at JPMorgan Securities, described the buyback as little more than a stopgap measure, 日本経済新聞 reported. He suggested the plan buys time rather than addressing the structural drivers of higher long-term yields.
Separately, 東洋経済オンライン noted that the surprise Treasury buyback signals US authorities are increasingly focused on persistently high interest rates, and that the move may hint at an intention to coordinate intervention with other nations.
The key question now is whether Bessent will expand the buyback further or shift to more forceful measures if yields continue to climb.
