Treasury’s Debt Gamble Moves Short10-year Treasury yields have reached 5.23%, while 30-year yields moved above 5.6%, levels not seen in more than two decades. That comes despite Scott Bessent increasing long-term bond buybacks to as much as $6 billion.
Citi expects the Treasury to announce $3 billion cuts to both 20-year and 30-year bond auctions on November 4, with the 20-year bond potentially canceled. The government would borrow more through short-term Treasury bills to reduce long-term bond supply and ease yields.
The trade-off is faster refinancing. If rates remain elevated, interest costs could rise further as US national debt approaches $40 trillion. The Treasury may reduce pressure on long-term yields, but it cannot remove the debt problem.
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