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August 21, 2026 - Treasury’s Buyback Backfire: Why Bond Yields Keep Surging
The Treasury tried to calm the bond market. Investors kept selling.
In this episode of Market Pulse, we examine why expanded Treasury buybacks failed to halt the surge in long-term yields—and what the market’s reaction reveals about the growing pressure from federal borrowing, inflation risk, and rising term premiums.
Buybacks can improve liquidity, but they cannot erase the fundamental imbalance between an enormous supply of government debt and increasingly price-sensitive demand. As investors demand greater compensation to hold longer-dated Treasuries, the consequences extend far beyond the…
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