A global bond selloff pushed the US benchmark 10-year Treasury yield to 4.75% on August 18, 2026, marking its highest level since early 2025. This increase of around two basis points occurred amid thin August trading and investor apprehension about inflation, coupled with a substantial influx of corporate debt supply.
US Treasuries continued their slide, with yields rising by one to two basis points across various maturities on Tuesday, contributing to the 10-year yield reaching its 19-month peak. This upward movement in yields reflects broader market concerns and has implications for borrowing costs.
Following this rise, on August 19, 2026, US Treasury Secretary Scott Bessent intervened by announcing an increase in the size of liquidity support buyback operations for long-dated securities, from the 10-year to the 30-year sector, to at least $4 billion. This move was intended to curb long-term borrowing costs and led to an initial decline in Treasury yields and the dollar.
However, the rally from Bessent's intervention proved short-lived. By August 21, 2026, longer-dated US government bond yields were moving higher again. The 30-year U.S. Treasury bond yield rose over 3 basis points to 5.273%, up from 5.21% a week prior. The 10-year U.S. Treasury yield also increased by over 3 basis points to 4.734%, recovering from 4.63% the previous Friday, as investor jitters over the expanded debt repurchase program and soaring national debt persisted.
This volatility sets the stage for Federal Reserve Chairman Kevin Warsh's upcoming speech at the Jackson Hole Economic Policy Symposium, where he is expected to offer insights into longer-term yields and the central bank's policy direction. Analysts like Paul Stanley of Arca suggest Warsh may prefer the market to enact monetary tightening, a trend already observed with the recent surge in bond yields.
