Longer-dated Treasury yields rise as Bessent's bond buyback rally fizzles out

A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 29, 2026.

Longer-dated U.S. government bond yields moved higher on Friday as investor jitters over the Treasury Department's extended debt repurchase program and soaring national debt continued to hover over markets.

The yield on the 30-year U.S. Treasury bond, one of the targets of the buyback plan, rose more than 3 basis points to 5.273%. A week ago, the long bond yielded 5.21%.

The 10-year U.S. Treasury yield — the key benchmark for mortgages, auto loans and credit card debt — was up more than 3 basis points at 4.734%. Last Friday, the 10-year yielded as little as 4.63%.

The shorter-dated 2-year Treasury note yield, which more closely tracks short-term Federal Reserve rate expectations, was higher by more than 4 basis points at 4.232%. A week, the two-year low yield was about 4.10%.

One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.

Borrowing costs rebounded sharply Thursday, with both 10-year note and 30-year bond yields rising more than 5 basis points.

That wiped out the 10-year yield's decline from Wednesday, when Treasury Secretary Scott Bessent intervened in the government bond market, ramping up in repurchases and aiming at easing pressure at the long end of the curve.

Traders are now looking ahead to Federal Reserve Chairman Kevin Warsh's upcoming speech at Jackson Hole Economic Policy Symposium, where he could offer insights on longer-term yields and the central bank's independence.

"The rise in bond yields and the Treasury's purchases all set the stage for what will be a very important Jackson Hole speech next week, which gives Warsh the opportunity to talk to markets, which are in need of more clarity on the central bank's plans," said Paul Stanley, Arca managing director and founding advisor.

"It seems as though Warsh wants the market to do the tightening for the Fed, and that's really what is happening with the recent surge in bond yields," he added.

Traders will also get the latest reading on the personal consumption expenditures price index, which is slated for release next Wednesday.