10-Year Treasury Yield Rises as Fed and Treasury Policies Clash

The 10-year Treasury yield climbed to 4.704% after Treasury Secretary Scott Bessent increased bond buybacks to $4 billion weekly to push long-term borrowing costs lower. The move briefly reduced yields before the gains reversed. Fed Chair Kevin Warsh’s hawkish Jackson Hole speech later added pressure, keeping markets focused on inflation and interest rates. Rising U.S. government debt, a $1.9 trillion projected deficit and heavy corporate borrowing for AI infrastructure are also increasing bond supply. The next focus is whether Treasury buybacks can offset continued pressure from Fed policy.