US 10-Year Treasury Yield Nears Multi-Month High Despite Bessent's Buyback Plan

According to Donya-e-Eqtesad, citing Bloomberg, US Treasury Secretary Scott Bessent announced on Thursday, August 20, 2026 (29 Mordad 1405) a plan to buy back a large portion of long-term US debt, funded by increased short-term bill issuance, which he called a "Treasury twist." Long-term bond yields fell for only a single day after the announcement before resuming their climb; the 10-year yield ended that week, on Friday, August 21, at 4.73 percent, near its highest level since Bessent took office.

The same report noted that one measure of US debt crossed the $40 trillion mark during the same week, while uncertainty over Federal Reserve Chair Kevin Warsh's strategy has added to investor concern. JPMorgan's rates strategy desk reported on Thursday that bond market functioning had improved so far this year.