Thirty-year U.S. Treasury yields climbed toward 5.30% on Thursday, reversing early gains after remarks by Treasury Secretary Scott Bessent about potential bond purchases failed to ease pressure on long-dated debt.
Bessent told CNBC the Treasury could buy "more than $4 billion at a time if needed," an amount analysts said could total roughly $14 billion in additional purchases over a quarter. The comments followed a pledge to impose "the toughest sanctions in history" on Iran, expanding on President Donald Trump’s prior vow of economic warfare against Tehran.
The Treasury’s stated capacity to intervene in the $32 trillion Treasury market contrasts with the $40 trillion national debt and a $1.2 trillion annual interest bill, figures that underscore the scale of fiscal pressures facing the administration. The budget deficit is running above 6% of GDP, while Congress faces requests for $1.5 trillion in defense spending, an additional $87 billion for potential conflict with Iran, and $600 million for a White House ballroom.
Brent crude oil reached a one-month high of $94.71 before easing to around $93.80, adding to the day’s market volatility. Investors also monitored flash August PMI data for the U.S., U.K., and EU, alongside U.K. and Canadian retail sales reports released Friday.
Bessent is scheduled to hold a media conference on Monday to outline further steps on sanctions, though the immediate market reaction suggested limited confidence in the Treasury’s ability to stabilize long-term yields through targeted purchases alone.
