Why Treasury Secretary Bessent’s moves to calm the bond market haven’t worked so far - AP News

Interest rates rebounded on Thursday, Aug. 20, 2026, despite Treasury Secretary Scott Bessent's efforts to curb longer-term borrowing costs, signaling continued investor anxiety over rising government debt, heavy borrowing by tech firms, and the Federal Reserve's inflation stance.
The yield on the 10-year Treasury note climbed back to 4.69%, roughly its level before Bessent's announcement that Treasury would double its bond buyback program to $4 billion per operation starting next month, up from $2 billion.
The buybacks aim to reduce the supply of 10-year to 30-year bonds and lift their prices, which pushes yields lower; Bessent told CNBC the program could exceed $4 billion, saying, "We have a big toolkit."
Higher bond yields increase borrowing costs for consumers and businesses, and reducing interest rates has been a top priority for the Trump administration, particularly as home purchases have slumped alongside rising mortgage rates this year.
The 30-year bond yield rose to 5.23% Thursday, only slightly below a 19-year high reached earlier in the week; President Trump has repeatedly pressed the Federal Reserve to cut rates, though the increases are driven mainly by financial markets.
Bessent indicated the administration would unveil a new plan to reduce the budget deficit, possibly by Monday, arguing the deficit will peak this year partly due to temporary factors such as tariff refunds.