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Gregory Daco reports that the 10-year yield approached 4.85 percent, reaching its highest level since 2023. This move followed the U.S. Treasury's announcement of a buyback of up to $6 billion in longer-term debt.
According to Gregory Daco, some market participants had anticipated a larger buyback, which might have helped lower yields further.
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Daco previously noted that Treasury Secretary Scott Bessent had moved to modify the U.S. bond market after criticizing his predecessor, as reported in an earlier article. He has also examined challenges facing the Fed and Treasury, citing issues with inflation, debt, and credibility gaps in another report. These developments have contributed to ongoing focus on government debt management.