US debt faces another pivotal week with buybacks and new auctions

US debt markets face another closely watched week as the Treasury expands its buyback program and prepares to auction long-term bonds. The measures come as high yields raise borrowing costs for consumers and the federal government confronts a debt load that has exceeded $40 trillion for the first time.

Beginning Wednesday, the Treasury plans to buy back at least $4 billion in nominal coupon securities per operation, up from $2 billion. The purchases will cover maturities in the 10-to-20-year and 20-to-30-year segments and continue through Nov. 4. The department says the campaign aims to moderate the cost of financing federal debt.

On Sept. 10, the Treasury is scheduled to reopen a 30-year bond. Its yield has fluctuated between 5.24% and 5.25%, remaining close to its highest level in 19 years. The developments follow a G20 meeting of finance officials and central bankers in North Carolina, where Treasury Secretary Scott Bessent sought to ease concerns about US bonds and the government’s debt burden.

Bessent said at the meeting that “the only way out” of the debt outlook in the United States and globally was through growth, which he said the administration of President Donald Trump was pursuing. He has also said the 10-year Treasury yield has remained unchanged since Trump returned to the presidency, but the article notes that the yield had already risen 20 basis points above its January 2025 level earlier in the week.

By the end of the week, the 10-year yield had climbed above 4.78%, its highest level since July 2004 and 50 basis points above its level when Trump returned to the White House. The latest rise followed data showing the US added 162,000 jobs in August, well above analysts’ estimates. The figures point to a labor market that remains dynamic while inflation stays above 3%.

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The only way out