U.S. Treasury futures erased gains from the prior session on Thursday as yields on benchmark 10-year notes rose to 4.65%, up from Wednesday’s levels.
The two-year decline in the 10-year Treasury note futures contract, which fell 0.29% to 108.47 points, reversed a midweek rebound driven by the U.S. Treasury’s announcement of expanded buybacks for long-duration debt. The market’s initial response to the plan—aimed at easing liquidity strains—proved short-lived, with yields resuming their climb despite remarks from U.S. Treasury Secretary Scott Bessent suggesting the buyback volume could be increased further.
The Treasury’s move underscores growing unease over persistent selling pressure in the bond market, where 30-year yields recently hit their highest level since 2007. The deterioration reflects broader fiscal strains, including a U.S. national debt that has surpassed $40 trillion for the first time. Structural factors such as rising interest costs, expanding social and healthcare expenditures tied to an aging population, and the fiscal impact of recent conflicts—including the Iran war—and tariff policies have compounded the pressure.
Macroeconomic data released on Thursday had limited influence on trading. Weekly initial jobless claims declined more than forecast, while the Philadelphia Fed’s August business outlook index improved more than expected. Neither release altered the dominant narrative of stretched fiscal conditions and elevated long-term borrowing costs.
