Scott Bessent Doubles Bond Buybacks as Yields Surge

U.S. Treasury Secretary Scott Bessent initiated a bond buyback program and doubled its size to increase bond prices and lower yields. Despite these efforts, global bond yields surged, with the 10-year U.S. Treasury note reaching its highest level since 2023 and the five-year Government of Canada bond yield hitting a two-year high.

This upward trend in yields has increased borrowing costs for households and companies, pushing average 30-year mortgage rates in the United States to their highest level since 2025. In other economic developments, August nonfarm payrolls reported 162,000 job gains, a figure that significantly exceeded the forecasted 50,000.

Separately, the federal government of the United States announced it will purchase one-fifth of Venezuela's crude oil reserves through a private company. The move aims to secure long-term energy reserves, though the acquisition will require significant investment over several years to repair the existing energy infrastructure.