US Treasuries fell on Thursday, with the belly and long end of the curve leading the decline. The move gave back a portion of the gains posted in the previous session, when an unexpected adjustment to the 10- to 30-year debt buyback schedule by the Treasury Department had lifted prices.

Treasury Secretary Scott Bessent said on Thursday that the size of the buybacks could exceed $4 billion, which briefly eased some of the selling pressure. Shortly after 3 p.m. in New York, short-end yields were up roughly 2 basis points, while 7- to 10-year yields rose about 4.5 basis points. Long-end yields climbed around 4 basis points on the day to 5.23%, recovering roughly half of the prior session's decline.

The 2s10s and 2s30s spreads both widened about 2 basis points intraday. US yields outperformed their UK and German counterparts, with the 30-year yield at one point climbing more than 7 basis points to 5.27%, returning to the level seen before Wednesday's Treasury announcement. The yield advance moderated after Bessent said in an interview that the Treasury has multiple tools at its disposal to support the market.

On the Federal Reserve side, San Francisco Fed President Mary Daly said she does not believe the central bank's credibility is at risk. St. Louis Fed President Alberto Musalem echoed that view, adding that the softness at the long end reflects a competition for capital as AI-related construction progresses. Higher oil prices also contributed to the yield move, with WTI crude rising 2.3% at the New York close after gaining as much as 3.7% during the session.

The Treasury's $8 billion reopening of the 30-year TIPS drew strong demand, with the stop-out yield coming in about 1.8 basis points below the when-issued level. Bidding metrics were solid, as indirect bidders took a record allocation while primary dealers received an all-time low. The roughly 3% real yield, the highest since 2008, underpinned demand for the auction. Separately, three companies were slated to raise a combined $3.25 billion in the US investment-grade bond market on Thursday.

As of 4:10 p.m. ET, key yields were as follows: the 2-year yield rose 2.1 basis points to 4.1833%, the 5-year yield gained 4.3 basis points to 4.3851%, the 10-year yield climbed 5.4 basis points to 4.7001%, and the 30-year yield advanced 5.6 basis points to 5.2466%. The 5s30s spread widened about 1.3 basis points to 85.97 basis points, while the 2s10s spread expanded roughly 3.5 basis points to 51.47 basis points.