Treasury Secretary Scott Bessent Expands Bond Buybacks as Yields Surge

Global bond markets experienced a chaotic sell-off in early September 2026, driving U.S. Treasury yields to their highest levels since 2008. The 30-year Treasury yield touched 5%, while the benchmark 10-year note reached a 19-month high of 4.8%. This volatility is driven by stubborn inflation, currently at 3.4%, mounting government debt, and military strikes between the United States and Iran that have pushed up oil prices.

Scott Bessent, the Treasury Secretary, responded by announcing a surprise expansion of the Treasury Department's bond buyback program, committing to buy back at least $4 billion of 10- to 30-year bonds. Bessent dismissed concerns over the rout, stating the U.S. has the best performing bond market and that the economy remains "very, very strong."

At the Jackson Hole symposium, Federal Reserve Chairman Kevin Warsh delivered a hawkish speech and pledged to return inflation to a 2% target, though officials remain divided on the timing of further rate hikes. The rising yields have increased borrowing costs for consumers, with 30-year fixed-rate mortgages averaging 6.71%.

These economic pressures are creating political challenges for President Donald Trump ahead of the midterm elections. While Bessent predicts rates will fall once the conflict with Iran concludes and AI provides productivity benefits, critics argue the cost-of-living increases may already be influencing voters.