President Trump's Iran Threat Erases Treasury's Bond Market Gains Within 24 Hours
Treasury Secretary Scott Bessent's initiative to stabilize the bond market through an expanded buyback program was swiftly undone by President Trump's announcement of an "ECONOMIC D-DAY" against Iran. On Wednesday, Bessent revealed plans to double buyback operations for 10- to 30-year debt, from $2 billion to at least $4 billion per operation, starting September 9. This move initially caused the 30-year Treasury yield to drop from 5.34% to 5.184% and the 10-year yield to fall to 4.637%. However, President Trump's subsequent threat against Iran, warning of the "most crushing economic operation ever taken against any country," triggered a sharp reversal. By Thursday, Brent crude prices surged to $94 a barrel, and the 30-year yield climbed back to 5.26%, effectively erasing all gains from the Treasury's intervention within a single trading session.