Bessent Reportedly Prepares Aggressive Moves to Push 10-Year Treasury Yield to 5%

Fox Business reported on August 25 that, according to Wall Street executives familiar with the matter, U.S. Treasury Secretary Scott Bessent plans to take extreme measures against traders betting on the long end of the U.S. Treasury market and trying to push the 10-year Treasury yield to 5%. The reported options include Treasury buybacks, increased issuance of short-term debt, and possibly canceling long-dated Treasury securities such as the 20-year bond. According to the source, the measures are meant to work as a short-term fix. The goal is to stop yields from climbing further and to avoid high interest rates crushing growth as the midterm elections approach. Wall Street figures, however, said the steps would not address the core problem. U.S. debt has already reached $40 trillion, and AI infrastructure buildout is adding to the competition for capital. The report also said the Trump administration is not expected to pursue fiscal tightening during the rest of its term. The plan remains to rely on economic growth and rising tax revenue to work down the debt. It also noted earlier reporting that Bessent has been eyeing the Treasury General Account, or TGA, as a powerful tool that could be used to help pay for Treasuries and influence long-dated bond yields.