David McNamara: US faces a reckoning on the bond markets

In a highly unusual step, the US Treasury announced it would at least double its buyback operations for longer-dated Treasury bonds, a move which saw Treasury yields fall about 10bps

US President Donald Trump and Scott Bessent, US treasury secretary. Picture: Yuri Gripas/CNP/Bloomberg via Getty Images

Mon, 24 Aug, 2026 - 15:15

David McNamara

David McNamara is the Group Chief Economist at AIB responsible for leading the bank's macroeconomic analysis and provide insights for both national and international stakeholders.

Last week, the US Treasury announced it would at least double its buyback operations for longer-dated Treasury bonds, increasing the maximum size from $2bn to at least $4bn per operation for maturities in the 10-20 year and 20-30 year sectors.

The move came after long-dated bonds, particularly 30-year Treasury yields, rose above 5.3%, their highest level since 2007.