Bessent pushes back on concerns over U.S. Treasury market pressure

Odaily News: U.S. Treasury Secretary Bessent on Sunday pushed back against growing concerns over the scale of U.S. debt and criticism of the Treasury Department's management of market volatility, arguing that market performance contradicts claims that investors are uneasy. Bessent stated, "First, I'm not sure where this so-called bond market turmoil is," noting that the U.S. Treasury market has been the "best performer" among major global bond markets this year.

Bessent also said the U.S. is in a more favorable position compared to many developed economies, as its economy continues to grow despite massive budget deficits. Bessent attributed higher yields to energy prices and inflationary pressures stemming from the Iran conflict, but he expects these factors to fade over time. He added that the rise in yields reflects confidence in the U.S. economy. Bessent also rebutted doubts voiced by some central bank officials regarding the Treasury Department's unexpected increase in the scale of Treasury buybacks, denying that the measure distorts the market or breaks with the traditionally predictable operational practices of the U.S. Treasury market.