- Treasury Secretary Bessent defended expanded long-dated Treasury buybacks before Congress as the 10-year yield touched 5.041%, its highest level since July 2007.
- The Treasury bought $5.19 billion of 10- to 20-year debt on September 10, below its $6 billion cap, and the 30-year yield rose to roughly 5.34% after the operation.
- The Federal Reserve is expected to hike rates on Wednesday for the first time since 2023, putting Chairman Kevin Warsh at odds with President Trump.
- TLT fell to $80, its lowest since July 2025, even as the fund attracted nearly $10 billion of inflows over three months; the 10-year yield reached 5.023% and the 30-year hit 5.383%.
- Mortgage rates moved back above 7% as rising oil prices, hot inflation readings, and fiscal concerns deepened the bond selloff.
Quotes
“The Treasury Department purchased $5.19 billion of debt maturing in 10 to 20 years on September 10, falling short of the $6 billion maximum it had announced”
“The iShares 20+ Year Treasury Bond ETF (TLT) has fallen to $80, its lowest level since July 2025”
“yields would be even higher without Treasury’s intervention”
“The Federal Reserve is expected to lift interest rates on Wednesday for the first time since 2023”