10-Year Treasury Yield Hits Highest Level Since November 2023 as $6 Billion Buyback Fails to Calm Markets

The 10-year US Treasury yield climbed to 4.85%, its highest closing level since October or November 2023, on Wednesday September 9, as inflation and debt concerns continued to press global borrowing costs higher. The move came even as the Treasury Department, led by Secretary Scott Bessent, announced a tripling of its liquidity support buyback operation, raising the maximum size from $2 billion to $6 billion per operation for nominal long-end securities in the 10-year to 20-year and 20-year to 30-year sectors.

Despite the intervention, yields rose after the announcement rather than falling, erasing any initial relief and finishing above where they stood before the 8:30 a.m. disclosure. The expanded buyback program is effective September 9, 2026, and runs through November 4, covering the remainder of the current refunding quarter, with future sizes to be addressed at the next Quarterly Refunding.

The yield surge rippled through equity markets, with the utilities sector falling as rising Treasury yields made the sector's dividend income less attractive relative to risk-free government debt. The 10-year yield also affects mortgage rates, auto loans, and credit card debt, meaning the multiyear high translates directly into elevated borrowing costs across the broader economy.