

Rising long-term U.S. Treasury yields (with the 30-year hitting multi-year highs around 5.3%+) amid concerns over the U.S. fiscal outlook, heavy debt issuance (including AI-related financing), and the national debt approaching $40 trillion, prompting Treasury Secretary Scott Bessent to announce plans to at least double long-term bond buybacks in a move reminiscent of the Fed’s 2011 “Operation Twist.”
This weighed on equities last week (S&P 500 down ~1.4%, Nasdaq ~2%), contributed to higher oil prices from Middle East/Iran tensions, and mixed with resilient economic data (stronger PMI readings) while markets eyed sticky inflation. Today (Aug. 26), investors are focused on the July PCE inflation data (Fed’s preferred gauge, with headline annual at ~3.7%) and Nvidia’s earnings as a key AI-demand test, alongside Jackson Hole signals from Fed Chair Kevin Warsh later this week. Yields have eased somewhat on the intervention talk and oil declines, but fiscal sustainability and rate-path uncertainty remain central market drivers.
Source: T. Rowe Price & Reuters
Important note and disclosure: This article is intended to be informational in nature; it should not be used as the basis for investment decisions. You should seek the advice of an investment professional who understands your particular situation before making any investment decisions.