Story perspectives

Trump Doubles Treasury Buybacks as Yields Hit 19-Year High

8/20/2026

Summary

Story summary

President Donald Trump’s administration doubled long-term Treasury bond buybacks, sending yields to a 19-year high.
The yield fell to 5.25% after peaking at 5.27% Thursday, per Treasury Secretary Scott Bessent’s interview.
The 10-year yield rose to 4.75%, the highest since early 2025.
Investors blame Trump-Iran conflict, oil above $91 a barrel, and a $2 trillion deficit for sell-off.
Federal Reserve (Fed) Chair Kevin Warsh ended guidance, raising uncertainty about rate moves.

History

Historical Context

After Paul Volcker raised the federal funds rate to a 20% peak in June 1981, the 10-year Treasury yield hit 15.84% and spurred a deep recession that forced Reagan’s budget deficit to $1.5 trillion and the national debt to triple by 1989. Treasury Secretary Scott Bessent now points to a $2 trillion deficit and geopolitical tension as the latest drivers of 5%-plus yields.

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Story summary

President Donald Trump’s administration doubled long-term Treasury bond buybacks, sending yields to a 19-year high.
The yield fell to 5.25% after peaking at 5.27% Thursday, per Treasury Secretary Scott Bessent’s interview.
The 10-year yield rose to 4.75%, the highest since early 2025.
Investors blame Trump-Iran conflict, oil above $91 a barrel, and a $2 trillion deficit for sell-off.
Federal Reserve (Fed) Chair Kevin Warsh ended guidance, raising uncertainty about rate moves.

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