US government bond yields rose to their highest level in almost three years after Treasury Secretary Scott Bessent announced a $6bn debt buyback program, below Wall Street expectations of $8bn‑$10bn. The benchmark 10‑year note climbed to just under 4.86 %, its highest since late 2023, as investors viewed the smaller-than‑expected intervention as insufficient to halt the long‑dated debt sell‑off. The program, aimed at bolstering the $32tn Treasury market, replaces a prior pledge to at least double regular purchases to $4bn.

Analysts warned the move could undermine the Treasury’s credibility and conflict with Federal Reserve inflation‑control efforts, noting that a previous $4bn buyback had no lasting effect on yields. Bessent defended the policy, suggesting the buybacks will address liquidity and price stability, while critics argue the underlying debt and deficit trajectory remains the real issue. The Treasury will finalize eligible bond lists and conduct the buyback from 1:40 pm to 2:00 pm ET, followed by auctions for 10‑year and 30‑year bonds.