BlockBeats News: On September 11, U.S. Treasury Secretary Bessent played down the market’s concerns that the scale of Thursday’s Treasury repurchase operation was lower than expected, and also eased worries about a sharp rise in U.S. Treasury yields.

Bessent said that the U.S. Treasury market is currently in "very good shape." He specifically pointed to the strong performance of two Treasury auctions held over the past few days. He also reiterated that the correlation between bonds and energy prices in recent times has been unusually high. Earlier, the yield on two-year U.S. Treasuries reached the highest level since 2024, and the yield on 10-year U.S. Treasuries also rose to a high since 2023. Factors that triggered this selloff include a surge in crude oil prices and fewer-than-expected Treasury bonds being actually repurchased by the Treasury Department.

The U.S. Treasury announced on Wednesday that it planned to buy back up to $6 billion in bonds, but on Thursday the actual total repurchase came to only $5.19 billion. Bessent said, “We only repurchase bonds when the prices are cheap,” but in this operation, bondholders apparently were more willing to keep their long-term securities. He added, “We typically receive sell offers of $20 billion,” whereas this time the Treasury received offers of only about $10 billion.