Gold added roughly 0.8% Monday morning and sits near record highs after the metal rallied in tandem with other risk assets last week while equities lagged. The move follows the U.S. Treasury's decision to double buybacks of long-dated bonds, a step that pulled the 30-year yield back from a 19-year high, even as analysts warn the broader forces pushing yields upward are not exhausted.
Gold is trading near record highs, adding around 0.8% Monday morning as Treasury Secretary Scott Bessent's debt-management strategy continued to weigh on long-dated bond yields. The bullion rally came as equities lagged behind gains in gold and other risk assets over the past week.
Treasury buybacks pull yields off multi-year highs
The rally follows the Treasury's decision to double buybacks of long-dated bonds, a move that pulled the 30-year bond yield back after it briefly touched a 19-year high.
But the relief may be only partial. Barclays analysts said in a research note that the forces pushing government bond yields higher are still not exhausted. The 10-year yield, they noted, is essentially the market's estimate of the average federal funds rate over the next decade plus a term premium, and investors have shifted their expectations significantly from a year ago, when policy rates were expected to be much lower by now.
Yields near 5% keep pressure on the broader market
That tension shows up elsewhere in the bond market. US 10-year Treasury yields traded in a range of roughly 4.69% to 4.75% through the latter part of August 2026, after peaking near 4.75% in late July, driven by persistent fiscal pressures, stubborn inflation and a structurally higher rate environment following years of near-zero rates. Aviva Investors fund manager Richard Saldanha is advising stock investors to diversify their portfolios as the 10-year yield pushes toward the 5% mark, given that sectors priced on discounted future cash flows are most exposed when yields rise.
Sources: CoinDesk, Barrons (snippet-based), Crypto Briefing
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