U.S. bond yield rise reduces Pesent plan gains

U.S. 30-year government bond yields rose to 5.27%, leading to a decline in the gains previously expected following the Treasury Department's announcement of expanding the buyback program aimed at controlling borrowing costs. Yields on 10-year bonds also increased by more than 10 basis points to approximately 4.8%, while two-year bond yields rose to 4.40%. These movements reflect investors' concerns about rising government spending and increased capital investments, along with persistent inflation in the global economy. Current yield levels are record-high in several markets, with 30-year UK bonds reaching their highest levels since 1998 and German bonds since 2011. Experts have confirmed that the buyback plans are merely temporary tools, as the economic system moves toward higher real interest rates and increased bond issuance. The Treasury Secretary stated that interventions aim to reduce market volatility, with the expanded buyback operations beginning in September to address pressures on long-term interest rates.

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