Bessent’s move to cool market ‘fever’ backfires in selloff

Bonds sharply sold off and stocks after Treasury Secretary Scott Bessent’s latest effort to tamp down what he called market “fever” backfired.

Bonds sharply sold off and stocks tumbled Wednesday after Treasury Secretary Scott Bessent’s latest effort to tamp down what he called market “fever” backfired.

At 11 a.m. ET, the Treasury Department announced that it would repurchase $6 billion worth of 10- to 20-year government bonds, in the hope that fewer bonds on the market would drive up demand, pushing down rates, or yields, that have soared to levels not seen in decades.

But that’s not what happened. Instead, most Treasury yields sharply jumped on the announcement. The 10-year bond yield surged to as high as 4.85%, its highest since November 2023. The 20- and 30-year bond yields surged to as high as 5.3%. When Treasuries fall, their yields rise.

Add to GoogleTrump says Iran war will end ‘after the election’02:21By 4 p.m. ET, bond yields had pulled back slightly from the highest levels of the day but remained sharply elevated.

The Nasdaq Composite, which is sensitive to interest rates given how many major tech companies it tracks, ended the day down 0.6%. The S&P 500 tumbled 0.5%.