Key facts
- US Treasury yields climbed on Thursday after initially falling, as Treasury Secretary Scott Bessent indicated further buyback interventions.
- Bessent announced plans to ramp up short-term borrowing to buy $4bn of 30-year Treasuries, doubling the previous quarter's amount.
- Gold prices rose to $4,543/oz, their highest since early June, amid fears of further bond market intervention.
- The US dollar fell to its lowest level against major currencies since April.
- In the UK, consumer confidence reached its highest point in nearly two years in August, according to the GfK index.
US Treasury Secretary Scott Bessent announced on Wednesday plans to ramp up short-term borrowing to buy $4bn worth of 30-year Treasuries, double the amount of the previous quarter. This move, aimed at controlling the administration's long-term borrowing costs, initially caused a 10 basis point fall in 30-year Treasury yields. However, throughout Thursday, these yields erased that easing and climbed by as much as eight basis points. Bessent told CNBC that the buyback program could be increased beyond $4bn.
Investor strategist Neil Wilson commented that the program is "not a fix for the key underlying reasons why yields have broken out higher." Gold prices have risen substantially since Bessent's announcement, reaching $4,543/oz, its highest price since early June, amid fears of more drastic bond market interventions. The dollar also fell to its lowest level against major currencies since April.
In the UK, consumer confidence has risen to its highest level in nearly two years, with the GfK consumer confidence index jumping three points in August to minus 14. This figure is the highest score since August 2024. However, JD Sports shares fell as much as 14 per cent on Thursday after the company significantly lowered its profit guidance for the remainder of the year, which weighed on London's blue-chip index. The FTSE 100 closed 4.8 points higher, while the FTSE 250 ended the session 134.9 points lower.