Bessent Says No Turmoil in US Treasuries, Calls Them Best-Performing Major Bond Market This Year

US Treasury Secretary Scott Bessent dismissed concerns over rising US debt and instability in the Treasury market, saying the recent increase in long-term yields reflects confidence in the US economy more than market stress.

Odaily, a cryptocurrency-focused media outlet, reported on August 31 that Bessent said he does not know where the bond-market turmoil cited by critics is supposed to be. He added that the US Treasury market has posted the best performance this year among the world's major bond markets.

Bessent said the US is in a more favorable position than other major advanced economies because it continues to grow despite a massive fiscal deficit. He said recent increases in Treasury yields were influenced by inflation pressures tied to energy prices and the conflict involving Iran, and that those factors should ease over time.

He also stressed that higher Treasury yields reflect confidence in the US economy.

Bessent pushed back as well against criticism of the Treasury Department's recent decision to increase bond buybacks by more than expected. He said he disagrees with some central bank officials who argue the move artificially affected Treasury prices or undermined predictable operating practices in the US government bond market.