Long term US Treasury yields rise above 5% despite buyback plan

In short: Long term U.S. borrowing rates moved to around 5% or higher, and a government effort to push them down only helped briefly.

What's going on

Investors have been closely watching U.S. Treasury yields, which are the interest rates the U.S. government pays to borrow money. These rates matter because they act like a “base price” for many other loans in the economy.

Reuters reported that the 10-year U.S. Treasury yield, often treated as the main reference point, came close to 5% on Sept. 11, 2026. It later eased to about 4.93% after an inflation report that looked less worrying than some investors expected.

The bigger move was in the 30-year Treasury yield. It broke above 5% and reached as high as 5.37% during the recent bond selloff, which is when many investors were selling bonds at the same time. That was the highest level since 2007, and it stayed well above 5% even after the Treasury tried to intervene.

The Trump administration, through Treasury Secretary Scott Bessent, promoted a bond buyback plan. In simple terms, that is like the government buying back some of its own IOUs in hopes of making the remaining ones more valuable, which can push yields down. Investors briefly drove yields lower, but the effect did not last.

What to watch

Markets are still focused on the 5% level, especially for the 10-year note, because it is an important psychological line. If the 10-year yield stays near or above 5%, borrowing could get more expensive for home buyers and businesses, and some investors may prefer bonds over stocks.

Source: NYTimes