Treasury Secretary Scott Bessent has tried to calm the bond market, but interest rates rebounded Thursday.

The yield on the 10-year Treasury note rose back to 4.69%.

That is nearly where it stood before Bessent announced a plan to double a bond buyback program to $4 billion per operation.

The buybacks are meant to reduce the supply of long-term bonds and boost their prices.

Bessent said Thursday that the program could be larger.

He argued that the yields do not reflect the underlying fundamentals.

He also said the administration would announce a new effort to reduce the budget deficit, possibly by Monday.

He claimed the deficit will peak this year, partly because of tariff refunds.

Investors remain worried about government debt, which topped $40 trillion on Wednesday.

The Congressional Budget Office estimated the annual deficit would top $2 trillion this year.

Gennadiy Goldberg of TD Securities said the market is skeptical that Treasury can backstop these moves.

He noted that reducing the deficit is mostly up to Congress.

Other factors are pushing yields higher.

Big Tech companies are raising large amounts of debt to build AI data centers.

Oil prices keep climbing due to uncertainty about the war with Iran, which adds to inflation threats.

New Fed chair Kevin Warsh has not signaled whether he will raise rates to fight inflation.

He has said he wants markets to set rates based on economic conditions, not on Fed expectations.

Bessent's intervention appears to work against that goal.