News / Korea / yonhap_finance
US Treasury Secretary Besent Attempts to Calm Bond Market Amid Yield Surge
Finance · Major Banks · yonhap_finance · 2026-09-01
Treasury Secretary Scott Besent dismisses concerns over rising US Treasury yields, citing strong economic fundamentals, despite 10-year yields hitting new highs.
What Happened
Bond Market Reassurance: US Treasury Secretary Scott Besent is actively working to soothe investor anxiety as Treasury yields continue to climb. He maintains that the current market volatility does not represent a systemic crisis and asserts that the US bond market remains the best-performing among major global economies.
Economic Fundamentals: Besent attributes the recent market turbulence to excessive pessimism, pointing to stable inflation expectations and robust US economic growth. He defended the Treasury's recent decision to increase long-term bond buybacks, dismissing claims that such interventions distort market mechanisms.
International Coordination: The Treasury is closely monitoring the impact of a weak yen on US yields, fearing that Japanese intervention could trigger a sell-off of US Treasuries. Besent met with Bank of Japan Governor Kazuo Ueda to emphasize the necessity of sound monetary policy and clear communication to mitigate excessive currency volatility.
Persistent Market Pressure: Despite the administration's efforts to project confidence, the benchmark 10-year Treasury yield rose to 4.788%, marking its highest level since mid-January. With 30-year yields also nearing 2007 highs, market participants remain skeptical of the official narrative regarding the stability of the debt market.