Bond market pressures Treasury Secretary Scott Bessent ahead of congressional testimony

The 10-year Treasury yield crossed 5% on September 14, 2026, for the first time since 2023. For Treasury Secretary Scott Bessent, the timing could not have been worse: he’s scheduled to testify before the House Financial Services Committee the very next day. Bessent’s buyback strategy isn’t calming markets Bessent has not been sitting idle. The Treasury doubled its bond buyback operations, scaling them up from $2 billion to at least $4 billion per operation. In some cases, acceptance limits have stretched to between $5.2 billion and $6 billion. The idea behind buybacks is straightforward: the Treasury repurchases older, less liquid bonds to smooth market functioning and, at least in theory, put some downward pressure on yields. The problem is that yields have rebounded after every intervention. Stanley Druckenmiller, the legendary macro investor who also happens to be Bessent’s former mentor, has not been shy about his assessment. He’s labeled the buyback expansion a “mistake” that undermines market fundamentals. What’s driving yields higher Annual deficits running close to $2 trillion, layered on top of a $40 trillion debt pile, make bondholders demand more compensation for the ri...