Bessent’s bond-buyback push jolts the market, sending long-dated yields lower

The U.S. Treasury unexpectedly raised its long-term bond buyback cap from $2 billion to at least $4 billion starting Sept. 9, a move that immediately boosted liquidity and pushed the 30-year yield down to about 5.20% as the dollar weakened. The shift aims to ease stress in a stressed bond market and suggests bigger bond auctions may be on the horizon, even as investors weigh inflation, borrowing needs, and the path of policy.