30-year yield remains near its highest level since 2007 after the buyback news faded.
Bessent signaled possible further increases beyond $4 billion and upcoming fiscal consolidation talk.
Dollar weakness continues with DXY under the 200-day average for the first time in months.
Analysts call the buyback size a small signal relative to total debt outstanding.
As debt surpasses $40 trillion, the bill for Washington spending comes due
Lawmakers could soon be faced with politically unpalatable choices that would leave few Americans unscathed.
Year after year, the federal government has spent more than it collected in taxes. Each annual shortfall increased the national debt, slowly at first and then by leaps, defying warnings of an inevitable reckoning.
Now, the reckoning may be at hand.
This week’s bond market sell-off brought government borrowing costs to their highest level in almost two decades and prompted an extraordinary Treasury Department intervention.
On Friday, the yield on the 30-year Treasury bond topped 5.27 percent, up slightly from one day earlier, a sign that Treasury Secretary Scott Bessent’s plan to calm markets is not working. After decades of free spending, Washington may soon be compelled to make some long-deferred, and politically unpalatable, choices that will leave few Americans unscathed.
It’s GLOBAL and out of control, and it’s tearing the national debt apart, spiking everyone’s interest rates on everything all over the world, boosting inflation, and likely incinerating the dollar.