Treasury yields climb as bond buybacks fail to calm markets ahead of Jackson Hole

Bond markets remained volatile as Treasury yields climbed, with the 10-year note returning to 4.73% and the 30-year nearing its 2007 peak, despite Treasury Secretary Scott Bessent’s announcement to double the repurchase of longer-term bonds. Investors are awaiting Wednesday’s July personal consumption expenditures data, the Federal Reserve’s favored inflation metric, and the Commerce Department’s updated second estimate of Q2 2026 growth, following a prior report of a modest 1.5% expansion.

The Fed continues to grapple with inflation staying above 3%, a situation aggravated by recent tariffs and the Iran conflict’s impact on oil shipments through the Strait of Hormuz. Attention is also on the annual Jackson Hole gathering, where Federal Reserve Governor Kevin Warsh is slated to speak on monetary policy. Technology shares, including Sandisk, Corning, Coherent, and Micron, posted declines, while oil prices slipped as the U.S. prepared new sanctions against Iran, whose rial has hit a record low on informal markets. Overall, higher yields threaten to dampen consumer spending and could influence the trajectory of U.S. monetary policy.