Bessent’s bid to cool market “fever” spurs selloff after $6 billion Treasury buyback
AI Market Summary
Treasury's $6B buyback of longer-dated bonds failed to cap yields, triggering a sharp selloff as 10Y rose to ~4.85% and 20Y/30Y approached ~5.3%. Higher long-end rates tightened financial conditions and hit rate-sensitive equities, weighing on the Nasdaq and S&P. The move also amplified concerns about fiscal sustainability after U.S. debt surpassed $40T, alongside inflation risk tied to Iran conflict and trade policy.
Impact level
● High
Affected assets
NCSINASDAQ1002USD/USDT-0.41%
AI Insight · NCSINASDAQ1002USD/USDTAI Insight
▼ Bearish
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U.S. Treasury Secretary Scott Bessent sought to cool what he called market “fever,” but a Treasury announcement to repurchase $6 billion of 10- to 20-year government bonds instead coincided with a jump in yields. The 10-year yield climbed to 4.85%, its highest since November 2023, while the 20- and 30-year yields rose to 5.3%. Stocks slipped at midday, with the Nasdaq Composite down 0.8% and the S&P 500 off 0.6%. Investors have also been focused on concerns that the Iran conflict and President Donald Trump’s trade policies could lift inflation, as U.S. national debt has surpassed $40 trillion.
