Aug. 19 marked a sharp escalation in Treasury support for the bond market, with the department at least doubling buybacks of longer-dated government debt.
The move reflects concern that markets are struggling to absorb swelling U.S. borrowing just as AI-driven debt issuance from hyperscalers such as Google, Amazon, Meta and Oracle accelerates.
Scott Bessent's intervention followed a surge in long-end rates, with 30-year Treasury yields climbing above 5.3% and raising pressure on market functioning.
The episode underscores a broader financing squeeze: public debt supply is colliding with heavy private capital needs tied to the AI buildout, a mix investors fear could keep yields elevated.