US Treasury Secretary Bessent Dismisses Concerns Over Treasury Market
MacroDigital Finance
US Treasury Secretary Bessent, in an interview with Reuters on the 30th, dismissed concerns about instability in the Treasury market, saying such worries overlook the strength of the US economy. He stated, "I'm not sure where the bond market turmoil is," and argued that this year's US bond market has shown the "best performance" compared to other markets. He emphasized that the US continues to grow despite its large fiscal deficit and is in a stronger position than many developed countries. Major US Treasury yields have been roughly flat over the past week, as investors balance concerns about the fiscal outlook with signs of solid growth. Bessent noted that energy price increases and inflationary pressures stemming from the Iran conflict have pushed yields higher, but he expects these factors to fade over time, adding that the rise in yields reflects confidence in the US economy. He also rejected the view that the Treasury's unexpected decision to expand its bond buyback program would distort the market, citing that the European Central Bank under Draghi and the Bank of Japan were not criticized for their aggressive bond purchases, and said, "My job is to smooth market movements and prevent disorderly conditions."
