It’s not a good day in the markets, Here’s a recap.
Add rising interest rates to Trump’s “tiny price to pay” list along with gasoline, diesel, fertilizer, and numerous other items.
30-Year Back Over 5.3 Percent
The initial market reaction to this Treasury announcement (CNBC reporting below) has been to push yields higher:
— Mohamed A. El-Erian (@elerianm) September 9, 2026
The 10-year is currently trading at 4.845% (up 5 bps on the day), while the 30-year has reached 5.302% (up 6 bps).#economy #markets @CNBC #bonds #yields pic.twitter.com/BvXiY70RY0
The 30-year long bond hit the highest yield in decades.
Staying with government bond yields, the US Treasury just paid 4.834% at issuance, the highest in almost twenty years (August 2007), despite strong demand at the auction.#economy #markets #bonds #yields
— Mohamed A. El-Erian (@elerianm) September 9, 2026
Highest yield since August 2007.
Bessent’s Pea Shooter
The U.S. Treasury just showed you how fragile the bond market has become.
— Macro Liquidity by Sunil Reddy (@Macrobysunil) September 9, 2026
They announced a $6B buyback of long-term debt, less than expected, and instead of calming the market, yields immediately exploded higher.
That tells you everything.
The buybacks are supposed to help… pic.twitter.com/1glJ4t7Fgf
Jim Bianco on Bond Selloff
2/3
— Jim Bianco (@biancoresearch) September 6, 2026
Why so bad? You buy a bond for its yield. Ten years ago, the long Treasury paid 2%. That was the ceiling, and then rates rose (price losses), taking even that away.
Some perspective: in 223 years, a negative 10-year return has happened in 25 months. 24 of them are right… pic.twitter.com/31NxE8zdTJ
The Fed has No Navy
The Fed has no Navy and desperately wants a deal. https://t.co/LsU9iLu1uk
— Jim Bianco (@biancoresearch) September 4, 2026
Mortgage Rates
30-Year Mortgage Rate hits highest level in more than 14 months 📈 🏡 pic.twitter.com/fuwUMTpA7E
— Barchart (@Barchart) September 2, 2026
Mortgage Rates are another item for the tiny price to pay list.
Don’t Worry, It’s Global
Good morning. Let’s check in on global yields of 10 year government bonds, shall we?
— James Lavish (@jameslavish) September 9, 2026
oh. pic.twitter.com/rnHWLe5jmT
Oil
- Brent Crude is back above $100 to $100.26 per barrel, up $2.34
- West Texas oil jumped $2.20 to $95.21.
Diesel will top $6.00 within days.
Bessent’s Buyback Operation Disappoints
CNN reports Bond yields rise after Treasury Department announces size of buyback operation
Bond yields rose Wednesday after the Treasury Department said it would buy back up to $6 billion of government bonds, putting a dollar figure on the operation first announced last month.
The 10-year US Treasury yield rose to 4.85%, its highest level since 2023. If the 10-year yield ends the day above 4.82%, it would be the highest closing level since October 2023.The Treasury Department on August 19 announced it would at least double the size of bond buybacks from September to November. The announcement on Wednesday pins the buybacks at up to $6 billion, triple the size of the standard $2 billion operation.
CNBC reports 10-year Treasury yield jumps to highest since 2023 despite Bessent’s $6 billion bond buyback plan
Treasury Secretary Scott Bessent said the department will buy back $6 billion of longer-date government debt. The news comes after Bessent announced the operation last month, saying the Treasury would at least double debt repurchases.
Yields moved higher despite the increased buyback as some on Wall Street believed the repurchases by Bessent would be even bigger. Peter Boockvar of The Boock Report said some on Wall Street believed the buyback would be as much as $7 or $8 billion.
Notes to Bessent
- Buybacks do not change fundamentals.
- $6 billion, even $20 billion is nothing in a trillion dollar market.
The Fundamentals
Yesterday, I discussed Seven Forces Support High and Rising Bond Yields
There are national and international forces pressuring yields.
Bessent has adopted a strategy of mind over markets.
Bessent’s strategy is not exactly working.