Bessent's buyback move offers bond markets relief

Relief emerged in global government bonds after U.S. Treasury pledged to double buybacks for longer-term bills, supporting demand at the long end. Separately, President Trump resumed criticism of the Federal Reserve over high interest rates, highlighting ongoing pressure from rising debt burdens. The news is likely to lift rates sentiment modestly, but the renewed political pressure on the Fed keeps the outlook mixed.

Analysis

Relief emerged in global government bonds after U.S. Treasury pledged to double buybacks for longer-term bills, supporting demand at the long end. Separately, President Trump resumed criticism of the Federal Reserve over high interest rates, highlighting ongoing pressure from rising debt burdens. The news is likely to lift rates sentiment modestly, but the renewed political pressure on the Fed keeps the outlook mixed.