US Treasury yields surge after bond buyback falls short

US Treasury yields extended their upward move on 10 September 2026 after the US Department of the Treasury bought back fewer bonds than anticipated. The operation targeted paper with maturities between 10 and 20 years.

The Treasury acquired $5.19 billion in bonds, falling below the $6 billion ceiling set a day earlier. Banks including Citi and Wells Fargo noted that the $6 billion ceiling was already below what traders expected.

Around 16:35 Brasília time, the 10-year Treasury note yield jumped to 4.960%, up from 4.844% at the previous settlement. The 30-year Treasury bond yield advanced to 5.371% from 5.293%. Yields were already facing upward pressure from surging oil prices.

This was the first buyback operation since Treasury Secretary Scott Bessent announced the expansion in August. Both benchmark yields remain well above the levels recorded before the Treasury began intervening just over a month ago.