--- title: "Bessent’s bond gains wiped out as 30-year Treasury yields jump once again" type: "News" locale: "en" url: "https://longbridge.com/en/news/297707287.md" description: "30-year US Treasury yields surged past 5.28%, erasing gains from Treasury Secretary Scott Bessent's recent buyback program, driven by concerns over rising national debt and inflation. Global bond markets also hit multi-year highs as investors demand higher compensation for long-term risk. Despite Bessent downplaying the sell-off, the pressure challenges the administration's goal of lowering borrowing costs." datetime: "2026-09-01T23:21:15.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/297707287.md) - [en](https://longbridge.com/en/news/297707287.md) - [zh-HK](https://longbridge.com/zh-HK/news/297707287.md) generator: "portal-rs" --- # Bessent’s bond gains wiped out as 30-year Treasury yields jump once again THE yields on the longest-dated US government bonds shot back to levels seen just before US Treasury Secretary Scott Bessent shocked markets in August by expanding a buyback programme in an effort to halt the rise. The gambit worked briefly, until the sell-off that has been sweeping through global markets resumed. By Tuesday (Sep 1), that drove 30-year Treasury yields over 5.28 per cent, the level seen before Bessent announced his move on Aug 19. The bounceback signals a clear message from the world’s most influential bond market: It will take more than an out-of-schedule tweak to the US Treasury’s buybacks to soothe investors worried about the surging US national debt and persistently elevated inflation. Yields on 30-year bonds remain just shy of the 19-year high hit before the US Treasury’s intervention. “The rates market has not been able to hold any type of significant rate decline,” said Mark Cabana, head of US rates strategy at Bank of America. “Investors demand the greatest compensation to extend that far out.” Yields on benchmark 10-year Treasuries, meanwhile, climbed to about 4.8 per cent, the highest since January 2025, shortly before US President Donald Trump’s return to the White House. Two-year yields, most sensitive to the US Federal Reserve’s policy, were up six basis points on Tuesday at 4.4 per cent as traders priced in a roughly 70 per cent chance that the US central bank at September’s meeting will raise interest rates for the first time since 2023. The pressure extended to long-dated bonds around the world, due to the same concerns about the oil-driven inflation shock and massive government deficits. Germany’s 30-year yields touched the highest since 2011, and the equivalent UK rate rose to a level last seen in 1998. Australian peers set a fresh record high in data going back to 2016, while the yield on a Bloomberg index of global sovereign bonds climbed the highest in almost two decades. Bessent has shrugged off the moves and previously characterised his steps as an effort to nudge a market that had gotten out of whack and untethered from its fundamentals. “I’m fine with it,” he said on CNBC this week. “The market is the market.” He echoed that on Tuesday, downplaying the bond market sell-off in an interview with a Fox Business news host by saying, “I don’t think we are in any kind of a dire situation.” Still, those pressures – which are keeping US yields at elevated levels – seem to be creating a headache for Bessent, who has touted a “big toolkit” at the US Treasury’s disposal to keep yields in check. Pulling down yields – and in turn, the cost of mortgages and other loans – has been a stated goal of the Trump administration since early 2025, though its heavy spending, tax cuts, tariffs and war against Iran have had the opposite impact. “The only way a bluff works is if nobody at the poker table knows you’re bluffing,” Dan Morehead, founder and managing partner at Pantera Capital Management, told Bloomberg TV. “I think it just it backfired.” BLOOMBERG ### Related Stocks - [BAC.US](https://longbridge.com/en/quote/BAC.US.md) - [BAC-Q.US](https://longbridge.com/en/quote/BAC-Q.US.md) - [BML-L.US](https://longbridge.com/en/quote/BML-L.US.md) - [BAC-L.US](https://longbridge.com/en/quote/BAC-L.US.md) - [BAC-K.US](https://longbridge.com/en/quote/BAC-K.US.md) - [BML-H.US](https://longbridge.com/en/quote/BML-H.US.md) - [BAC-N.US](https://longbridge.com/en/quote/BAC-N.US.md) - [BAC-E.US](https://longbridge.com/en/quote/BAC-E.US.md) - [MER-K.US](https://longbridge.com/en/quote/MER-K.US.md) - [BAC-O.US](https://longbridge.com/en/quote/BAC-O.US.md) - [BML-G.US](https://longbridge.com/en/quote/BML-G.US.md) - [BAC-M.US](https://longbridge.com/en/quote/BAC-M.US.md) - [BAC-B.US](https://longbridge.com/en/quote/BAC-B.US.md) - [BML-J.US](https://longbridge.com/en/quote/BML-J.US.md) - [BAC-S.US](https://longbridge.com/en/quote/BAC-S.US.md) - [BAC-P.US](https://longbridge.com/en/quote/BAC-P.US.md) - [8648.JP](https://longbridge.com/en/quote/8648.JP.md) ## Related News & Research - [3 Funds You Haven't Heard Of That Yield Up to 9.5%](https://longbridge.com/en/news/297817385.md) - [1 Trade to Make Now as Inflation Fears Swirl in September](https://longbridge.com/en/news/297798498.md) - [EXPLAINER-US Treasury yields are rising — Why does it matter?](https://longbridge.com/en/news/297670038.md) - [What do rising US Treasury yields mean for Singapore investors?](https://longbridge.com/en/news/297710145.md) - [The 10-year Treasury yield is breaking out and 5% could be just the beginning. 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