Market Research

Preferred on Google

Global Bond Selloff Wipes Out Bessent Gains

Global bond selloff erased Bessent's buyback gains as US 30-year yields hit 5.29% and UK gilt surge halved fiscal headroom.

Sep 2 at 7:03 AM3 min read

Bond yield charts rising as global bond selloff pushes US and UK borrowing costs to multi-decade highs — US 30-year yield at 5.29% erases Treasury buyback gains as UK and German yields hit highs last seen in 1998 and 2011.· Bloomberg Podcast

Visual TL;DRKey stepsFull picture

Buyback bet failsDriver

Bessent floated buybacks but $2B couldn't counter $2T annual supply

Massive supply floodDriver

$2 trillion in annual bond supply overwhelmed fresh market buying

Yield surgeEffect

US 30-year hit 5.29% while UK 30-year reached 1998 levels

From the article 2 mentionsThe US 30-year yield climbed to 5.27% and then 5.29%, while the 10-year hit 4.81%.

Fiscal headroom halvedOutcome

UK gilt surge cut government spending flexibility in half

From the articleBloomberg Economics estimates that multi-decade highs in gilt yields have cut the government's fiscal headroom in half.

Rate cut outlook shiftsDriver

From the articleSteven Major, a global macro adviser at Tradition, noted that expectations swung from three rate cuts priced at the start of the year to a hike now, a 100 basis point shift he said explains the move.

AI spending scrutinyContext

Nvidia and Dyson examples highlight ballooning AI infrastructure costs

Buyback bet failsDriver

Bessent floated buybacks but $2B couldn't counter $2T annual supply

Massive supply floodDriver

$2 trillion in annual bond supply overwhelmed fresh market buying

Yield surgeEffect

US 30-year hit 5.29% while UK 30-year reached 1998 levels

From the article 2 mentionsThe US 30-year yield climbed to 5.27% and then 5.29%, while the 10-year hit 4.81%.

Fiscal headroom halvedOutcome

UK gilt surge cut government spending flexibility in half

From the articleBloomberg Economics estimates that multi-decade highs in gilt yields have cut the government's fiscal headroom in half.

Germany yields spikeEffect

Germany 30-year touched highest level since 2011

Contents(4)

The global bond selloff picked up speed on September 2 and wiped out the rebound that Treasury Secretary Scott Bessent's expanded buybacks had produced.

The US 30-year yield climbed to 5.27% and then 5.29%, while the 10-year hit 4.81%.

Germany's 30-year touched its highest level since 2011, and the UK 30-year rose to a point last reached in 1998.

The full discussion can be found on Bloomberg Podcast's YouTube channel.

Bessent's Gains Wiped Out, Gilts Lead Global Selloff, Putting AI in Your Mouth | Bloomberg... - Bloomberg Podcast — Bessent's Gains Wiped Out, Gilts Lead Global Selloff, Putting AI in Your Mouth | Bloomberg..., from Bloomberg Podcast

Why Bessent's buyback bet didn't hold

Bessent floated buybacks to push a market he argued had drifted away from fundamentals back toward them.

Pantera Capital founder Dan Morehead said the move didn't stick because $2 billion in fresh buying couldn't counter roughly $2 trillion of annual supply hitting the market.

Steven Major, a global macro adviser at Tradition, noted that expectations swung from three rate cuts priced at the start of the year to a hike now, a 100 basis point shift he said explains the move.

Why gilts sliced the UK's fiscal wiggle room in half

Bloomberg Economics estimates that multi-decade highs in gilt yields have cut the government's fiscal headroom in half.

That leaves new Prime Minister Andy Burnham with a £12 billion headache before his first Prime Minister's Questions.

Burnham used his first appearance in the Commons to promise more public control over water, energy and transport, while his predecessor Keir Starmer said he will resign as an MP and trigger a by-election in Holborn and St Pancras.

How energy and geopolitics are pushing yields higher

Brent crude pushed toward $95, and European TTF gas rose 2.5% to €74 per megawatt hour, more than 70% above early July levels.

Markets strategist Mark Cranfield tied the renewed US strikes on Iran to fresh energy jitters, just as investors now expect 5% on the US 10-year to send ripples across global markets.

Bessent said China blocked a unanimous G20 finance statement in North Carolina, with 19 members backing open passage through the Strait of Hormuz. Germany, separately, blamed Russia for a failed drone attack at Leipzig airport and closed the Russian consulate in Bonn.

What Nvidia and Dyson say about AI spending

Nvidia is in advanced talks to acquire Hugging Face for around $14 billion, including a $1 billion retention package.

Franklin Templeton's Sarah Araghi said Nvidia is backstopping the AI ecosystem because hyperscaler free cash flow can no longer fund the buildout on its own.

Dyson showed off an AI toothbrush with an integrated camera and machine learning trained on hundreds of thousands of dental images that fires a burst of mouth rinse at trouble spots.

The bond market is no longer debating when cuts return.

© 2026 StartupHub.ai. All rights reserved. You may not republish this article in full without a license. Search engines and AI research tools may crawl and summarize for reference. Bulk reproduction or model training requires a license. See our terms.

#Bonds #US Treasuries #Gilts #Nvidia #Hugging Face

Written by

Editor, StartupHub.ai

Daniel Singer is the editor of StartupHub.ai, a technology expert and thought leader on AI and its applications across sectors, from fintech and healthcare to developer tooling and consumer software. He writes and tests the tools covered here thoroughly and regularly, and built StartupHub.ai to give founders, operators and buyers a clearer read on what they are actually being sold.

More from Daniel Singer