Treasury Buyback Briefly Pushed Long-Term Rates Down — Then They Resumed Climbing

On August 18, 2026, the interest rate on 30-year U.S. government bonds hit 5.337%, the highest since 2007. The next day the Treasury bought back more of its own debt, pulling rates down about 0.1 percentage point. By August 20, rates were rising again and stocks fell. The buyback was a temporary fix, not a turnaround — supply and oil-driven inflation pressure persist.