Treasury Secretary Scott Bessent Defends Rising U.S. Bond Yields
Treasury Secretary Scott Bessent attributed multiyear highs in U.S. Treasury yields to global oil prices and the war in Iran.
U.S. Treasury Secretary Scott Bessent defended his market outlook after 10-year Treasury yields climbed to their highest levels since 2002. In an interview with Axios, Bessent acknowledged that he cannot control the bond market, noting that while he previously described himself as "the house," the house does not win every hand.
Bessent attributed the rise in yields to increasing global oil prices driven by the war in Iran rather than issues with U.S. debt. He maintained that the U.S. bond market remains the strongest in the world and expects yields to decrease over time.
To address rising borrowing costs, the United States Department of the Treasury has intervened by buying back longer-dated bonds. The department also provided support for the Japanese yen in currency markets to help contain the yield surge.
