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 risk of holding US government paper. The 30-year Treasury yield has frequently tested or exceeded 5% in recent weeks.

Higher Treasury yields ripple through the entire economy. They set the baseline for mortgage rates, corporate borrowing costs, and auto loans. When the 10-year yield sits above 5%, the cost of capital rises for virtually everyone, from Fortune 500 companies refinancing debt to first-time homebuyers trying to lock in a rate.

Bessent’s balancing act before Congress

When Bessent takes his seat before the House Financial Services Committee on September 15, he’ll face questions spanning inflation, energy prices, and Federal Reserve policy. Bessent has cited an unemployment rate of 4.1% and pointed out that wages for lower earners have been increasing faster than those for higher earners.

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