The 30-year US Treasury yield surged to 5.34% in August 2026, its highest level since 2007, while the 10-year note climbed above 4.7%. Treasury Secretary Scott Bessent responded by doubling debt buyback operations from $2 billion to $4 billion per auction between September and November. The effect was short-lived: after an initial dip to around 5.18%, yields rebounded to between 5.2% and 5.27%, with analysts describing the relief as temporary. The US national debt crossed the $40 trillion threshold, creating a self-reinforcing cycle where higher yields lead to higher interest costs, requiring more borrowing and adding to bond supply. Bond traders indicated that the Treasury needs to address the structural deficit trajectory rather than relying on tactical liquidity operations.
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