US Treasury buyback briefly eases bond rout, but debt worries persist

US Treasury buyback briefly eases bond rout, but debt worries persist By Rae Wee, Harry Robertson and Gertrude Chavez-Dreyfuss Thu, August 20, 2026 at 1:19 PM EDT 4 min read DX-Y.NYB By Rae Wee, Harry Robertson and Gertrude Chavez-Dreyfuss SINGAPORE/LONDON/NEW YORK, Aug 20 (Reuters) - The U.S. Treasury's surprise bond buyback plans briefly stemmed a global rise in long-term borrowing costs, but lingering concerns about inflation and expanding government debt sent longer-dated Treasury yields higher again on Thursday, while the dollar edged ‌up. More from Yahoo Scout The Treasury responded on Wednesday to U.S. long-bond yields hitting the highest level since 2007 by doubling long-end buybacks to at least $4 billion per operation. Though the amount ‌is negligible in a market worth $32 trillion, analysts said the move showed the administration's sensitivity to rising long-term rates and inclination to intervene in markets. Elevated borrowing costs have been driving mortgage rates higher and commanding ​front-page attention. Investors also said the decision raised questions as to whether the Federal Reserve or the Treasury is now the bigger influence on general credit conditions. It comes on the heels of the U.S. Treasury buying yen in currency markets just weeks ago. STEPS TO CONTROL THE LONG END "Any intervention typically doesn't work that well in the long term. After a while, the yields tend to just return to levels that had been in place before," said Michael Goosay, chief i…