Oil's decline eased inflation concerns and relieved pressure on Treasury
Secretary Bessent, lifting US Treasury prices and sending yields lower. Optimism
about easing Middle East tensions pushed yields across maturities down about 2–4
bps; the months-long selloff that had driven the longest-dated yields to near
20-year highs has eased. Since Bessent last week unveiled a surprise plan to at
least double Treasury buybacks to lower long-term rates, the 30-year yield has
dropped roughly 9 bps to 5.19%. The measure — promising reduced long-term debt
supply and signaling willingness to intervene to prevent excessive yields —
provided support but has drawn broad criticism and is seen as unlikely to have a
durable effect given that rising yields reflect high inflation and concerns over
Surging government debt.
