U.S. Bond Yields Surge
Bond yields jumped worldwide, lifting U.S. borrowing costs and rattling markets.
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Analysis & opinion
The reporting
U.S. long-term borrowing costs rose again after Treasury Secretary Scott Bessent said the Treasury would expand long-dated debt buybacks, including doubling the program next month from $2 billion, in an attempt to ease pressure in the bond market. The 30-year Treasury yield topped 5.3%, its highest level since 2007, while the 10-year yield rose as high as 4.748%, its highest level since January 2025. Investors cited persistent inflation, rising federal debt near $40 trillion and heavy global bond issuance as reasons for demanding higher yields.
Analysis & opinion
Military Remark GaffeLeans Left
Trump’s suggestion that the military could be used in response to bond-market turmoil was a bizarre and unserious mistake. The remark deserved ridicule because it wildly misunderstood what calming financial markets requires.
Fiscal Fix NeededMostly Center
Treasury efforts to support the bond market do not solve the underlying debt problem and can make investors more worried about inflation. The proper response to the selloff is to reduce federal deficits rather than rely on market interventions that postpone the reckoning.
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