The U.S. Treasury announced on Wednesday that it would increase the single-transaction limit for long-term Treasury buybacks to $6 billion, tripling the original scale set last month. However, this failed to curb the sell-off in U.S. Treasuries, with the 10-year Treasury yield hitting a three-year high during intraday trading. A $39 billion auction of 10-year Treasuries cleared at a yield of 4.834%, marking the highest yield ever for an auction of that maturity.

U.S. Treasury Secretary Scott Bessent admitted on Tuesday that his goal was merely to slow the pace of price volatility and prevent the spread of harmful narratives, not to alter the "equilibrium" price of Treasuries. The market was disappointed by the $6 billion buyback limit, having previously expected single-operation capacity to reach $10 billion.