US Treasury yields reach 4.85% despite six-billion-dollar buyback ahead of FOMC
Rising yields on ten-year sovereign debt signal continued pressure across risk assets and cryptocurrency markets.
The yield on 10-year U.S. Treasuries rose to 4.85%, reaching its highest level since 2023 despite an expanded debt buyback by the U.S. Treasury. Treasury Secretary Scott Bessent initiated a $6 billion repurchase operation targeting 10- to 20-year bonds, tripling the previous $2 billion program.
While asset repurchases are typically designed to support bond valuations and lower yields by reducing circulating supply, persistent selling pressure in the debt market drove yields upward. Analysts at Kobeissi Letter noted that yields could surpass 5.00% in the coming week, pointing to structural strains across the financial system.
Several macroeconomic factors are weighing on market conditions, including energy price increases tied to geopolitical conflict, a federal deficit near $2 trillion, and annual interest costs around $1.2 trillion. Markets have also assigned a 60% probability to a Federal Reserve interest rate hike at the upcoming FOMC meeting, which could tighten financial conditions and weigh on digital assets.
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