American government borrowing costs have risen to a three-year high after a $6bn (£4.4bn) bond market intervention disappointed investors.
The US treasury said on Wednesday it would buy back $6bn in government debt as Scott Bessent, the treasury secretary, tries to suppress high bond yields.
However, the intervention underwhelmed investors and yields rose after the announcement. The interest rate on benchmark 10-year Treasuries rose to 4.85pc, the highest level since late 2023. The cost to borrow over 20 and 30 years also rose sharply.
The jump is a setback for Mr Bessent and Donald Trump, who have both sought to combat a sharp recent rise in US borrowing costs that has put pressure on the White House's economic plans.
It will also likely raise concerns that the global bond sell-off seen last week could reignite.
#bond #costs #year
The US treasury said on Wednesday it would buy back $6bn in government debt as Scott Bessent, the treasury secretary, tries to suppress high bond yields.
However, the intervention underwhelmed investors and yields rose after the announcement. The interest rate on benchmark 10-year Treasuries rose to 4.85pc, the highest level since late 2023. The cost to borrow over 20 and 30 years also rose sharply.
The jump is a setback for Mr Bessent and Donald Trump, who have both sought to combat a sharp recent rise in US borrowing costs that has put pressure on the White House's economic plans.
It will also likely raise concerns that the global bond sell-off seen last week could reignite.
#bond #costs #year
19 hours ago
