US Treasury Expands Buybacks as Bond Yields Spike

Wall Street recorded its worst weekly performance in over a month as bond yields rose across the United States and other developed markets. Barclays attributed the volatility to oil prices exceeding $90 a barrel and increased borrowing by AI hyperscalers to fund capital expenditures.

In response to the disorderly rise in yields, the United States Department of the Treasury expanded its buyback operations to stabilize the market. While strong corporate earnings provided a cushion for equity indices, the U.S. dollar weakened as investors moved capital into gold and the euro.

Fiscal concerns and political uncertainty ahead of autumn budget negotiations placed significant pressure on France, where OAT spreads widened to near post-Covid highs. Market participants are now awaiting the Jackson Hole symposium and an earnings report from Nvidia to determine the sustainability of the debt cycle and the current level of AI demand.