Overview
- The U.S. Treasury said it will at least double repurchases of longer‑term debt and Secretary Scott Bessent signaled the program could be larger, with purchase operations scheduled to run from September 9 to November 4.
- Long‑term Treasury yields resumed their climb this week with the 10‑year around the mid‑4% range and the 30‑year above 5%, a move that pressured equity valuations and left major U.S. indexes with weekly losses.
- Company‑specific shocks magnified the swings: Walmart cut its third‑quarter outlook and its shares fell about 9%, driving a roughly 703‑point Dow drop, while Moderna surged more than 175% on cancer‑vaccine trial news then later pulled back sharply.
- Crypto and Mexican markets diverged from U.S. equities as bitcoin rallied to multi‑week highs near $79,000, lifting crypto‑linked stocks, and Mexico’s S&P/BMV IPC recovered above 65,000 led by miners Grupo México and Peñoles.
- Market strains persist because the Treasury must fund buybacks within its financing plan so they may not fully offset structural selling, and higher oil prices tied to U.S.‑Iran tensions plus Fed minutes that left rate hikes on the table raise the risk of further upside in inflation and yields.