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$6B Treasury bond buyback fails to lower yields

By Drooid · Sep 13, 2026, 6:08 PM UTC · How we work

Summary

Bessent Bond Buyback

U.S. Treasury Secretary Scott Bessent launched a $6 billion bond buyback that failed to lower yields.
Ten-year Treasury yields rose to 4.95%, the highest level since November 2023.
Thirty-year yields climbed to a 52-week high of 5.35%.
The buyback closed with $5.19 billion purchased, below the $6 billion cap.
White House spokesperson Kush Desai praised Bessent’s past Argentine peso intervention as market-stabilizing.

Summary

Bessent Initiates Twist

Treasury official said the Treasury monitors buybacks to support market liquidity.
Treasury official Bessent called the operation a “Treasury twist,” likening it to the Fed’s past yield-lowering strategy.
Analysts noted the buyback was announced outside the Treasury’s regular quarterly schedule, indicating a more activist stance.
Treasury sold $39 billion of 10-year notes at a 4.834% yield, the highest auction yield since 2007.

History

Historical Context

In 1961 the Fed used “Operation Twist” to flatten the yield curve by swapping short-term for long-term Treasuries. The strategy was revived on 21 September 2011 when the FOMC, led by Chairman Ben Bernanke, reallocated $400 billion, cutting the 10-year yield from 3.5% to 2.9% within three months. Today the Treasury’s $6 billion twist, overseen by Secretary Scott Bessent, echoes that precedent as policymakers seek to temper the near-5% ten-year rate.

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Bessent Bond Buyback

U.S. Treasury Secretary Scott Bessent launched a $6 billion bond buyback that failed to lower yields.
Ten-year Treasury yields rose to 4.95%, the highest level since November 2023.
Thirty-year yields climbed to a 52-week high of 5.35%.
The buyback closed with $5.19 billion purchased, below the $6 billion cap.
White House spokesperson Kush Desai praised Bessent’s past Argentine peso intervention as market-stabilizing.

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