Why Treasury Secretary Bessent's moves to calm the bond market haven't worked so far
- Interest rates rebounded despite Treasury Secretary Scott Bessent's efforts to stabilize borrowing costs.
- The yield on the 10-year Treasury note rose to 4.69%, nearly the same level as before Bessent's announcement.
- Bessent announced a doubling of the bond buyback program to $4 billion per operation to boost bond prices.
- Rising bond yields are increasing borrowing costs for consumers and businesses, affecting home purchases.
- Overall U.S. debt surpassed $40 trillion, with the Congressional Budget Office estimating a $2 trillion deficit this year.
Interest rates rebounded Thursday despite efforts by Treasury Secretary Scott Bessent to put a lid on longer-term borrowing costs, a sign Wall Street investors remain worried about burgeoning government debt, heavy borrowing by tech firms, and the Federal Reserve’s commitment to fighting inflation.
The yield on the 10-year Treasury note, a key benchmark for mortgage rates, rose back to 4.69% Thursday. That is nearly where it stood early Wednesday before Bessent surprised financial markets by announcing that Treasury would double the size of a bond buyback program starting next month to $4 billion per operation from $2 billion.
Bessent said Thursday on CNBC that the bond repurchase program could be larger than $4 billion. Rising bond yields push up borrowing costs for consumers and businesses, and the Trump administration has set reducing interest rates as a top goal.
Overall debt topped $40 trillion on Wednesday, a staggering record that arrived just months after the national debt first blew past the $39 trillion mark in April. The Congressional Budget Office estimated earlier this week that the annual gap between government revenue and spending would top $2 trillion this year.
财政部长贝森特平息债券市场的举措为何未能奏效
尽管财政部长贝森特努力稳定长期借贷成本，利率仍在周四反弹，这表明华尔街投资者对不断增长的政府债务、科技公司大量借贷以及联邦储备委员会抗击通胀的承诺感到担忧。
10年期国债收益率，作为抵押贷款利率的关键基准，周四回升至4.69%。这几乎与贝森特在周三早些时候宣布前的水平相同，他宣布财政部将从下个月开始将债券回购计划的规模加倍，从每次20亿美元增至40亿美元。
贝森特在周四的CNBC节目中表示，债券回购计划的规模可能会超过40亿美元。债券收益率的上升推高了消费者和企业的借贷成本，而特朗普政府将降低利率设定为首要目标。
截至周三，美国整体债务超过40万亿美元，这一惊人记录是在国家债务在四月首次突破39万亿美元几个月后出现的。国会预算办公室在本周早些时候估计，今年政府收入与支出之间的年度差距将超过2万亿美元。