STOCKS | Bessent Fails to Cool U.S. Treasury Market as Yields Near 5%

U.S. Treasury yields climbed to near a three-year high this week, with the 10-year yield briefly touching 4.98% in Asian trading on Friday before easing to 4.94% in London. According to Sina Finance, U.S. Treasury Secretary Scott Bessent tried to steady the $32 trillion U.S. Treasury market, but investors said his first move was too cautious to curb the surge in yields. The Treasury Department launched a $6 billion buyback program, but borrowing costs kept rising. According to Sina Finance, Morgan Stanley Wealth Management chief economic strategist and Treasury Borrowing Advisory Committee member Ellen Zentner said some U.S. measures have taken on emerging-market-style risks. The report said the rise in borrowing costs was triggered by a sharp jump in oil prices after conflict between the United States and Iran in the Strait of Hormuz escalated on Thursday, while Iran-backed Houthi forces launched attacks that threatened regional energy supplies. Brent crude had earlier approached $110 per barrel before falling below $105. According to Sina Finance, Treasury officials said the first buyback operation was capped at $6 billion, above the at least $4 billion promised when the plan was announced in mid-August, but some banks and investors had expected a larger move. The Treasury said it accepted $5.2 billion in sell offers on Thursday. The article also said Bessent has taken a more aggressive approach in recent weeks, including support for the yen and pressure on the euro at the end of July, and warning investors not to short the yen.