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Scott Bessent's first Treasury buyback operation failed to stabilize the market and pushed 10-year yields to a three-year high.

The Treasury market experienced a significant rout on Thursday as a new auction of 30-year U.S. government debt and the first buyback operation by Treasury Secretary Scott Bessent failed to calm the market. The 10-year Treasury yield rose 12 basis points to 4.96%, reaching its highest level in approximately three years and approaching the 5% threshold.

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This market movement was influenced by rising oil prices and new inflation data that increased the probability of a Federal Reserve interest-rate hike next week. Because Treasuries serve as the baseline for most U.S. interest rates, their trading value impacts mortgage rates. Mortgage rates reached a new high on Thursday, following a trend of high rates since June 2025. The market had expected a larger buyback announcement than what was actually delivered, which resulted in less demand than anticipated and contributed to the higher rates.

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