Yields on long-term U.S. Treasury bonds rose amid market concerns
Yields on long-term U.S. Treasury bonds rose on Friday amid investor concerns over the U.S. Treasury Department’s expanded debt buyback program and the rapid rise in public debt, according to CNBC.
The yield on 30-year U.S. Treasuries, which are one of the assets targeted by the buyback program, rose by more than 3 basis points to 5.273%. A week earlier, it stood at 5.21%.
The yield on 10-year Treasury bonds, a key benchmark for mortgage rates, auto loans, and credit card debt, rose by more than 3 basis points to 4.732%. Last Friday, the rate had fallen to 4.63%.
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The yield on 2-year Treasury bonds, which is more closely tied to expectations regarding the Federal Reserve’s short-term policy, rose by more than 4 basis points to 4.234%. A week ago, it was around 4.10%. One basis point equals 0.01 percentage point.
On Thursday, borrowing costs rose sharply: yields on 10-year notes and 30-year bonds rose by more than 5 basis points. This offset the decline in 10-year yields on Wednesday, when U.S. Treasury Secretary Scott Bessent stepped up bond purchases in an effort to ease pressure on the long end of the yield curve.
Market participants are also awaiting a speech by Fed Chair Kevin Warsh at the Economic Symposium in Jackson Hole. He may provide guidance on long-term yields and the central bank’s independence. New data on the Personal Consumption Expenditures Price Index is scheduled to be released next Wednesday.
