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US Treasury Secretary Bessent Dismisses Bond Market Volatility Concerns
Finance · Major Banks · yonhap_finance · 2026-09-01
US Treasury Secretary Scott Bessent has rejected claims of instability in the US Treasury market, asserting that the economy remains robust.
What Happened
Bond Market Assessment: US Treasury Secretary Scott Bessent has dismissed concerns regarding volatility in the US Treasury market, asserting that it remains one of the best-performing markets globally. He questioned the validity of claims regarding market turmoil, suggesting that such fears are misplaced.
Economic Outlook: Bessent emphasized that the US economy continues to grow despite significant fiscal deficits. He attributed current upward pressure on interest rates to temporary factors, such as energy price spikes, which he expects to subside over time.
Policy Defense: The Treasury Secretary defended the department's decision to expand bond buyback programs against critics who argue it distorts market predictability. He clarified that his primary objective is to maintain orderly market conditions rather than manipulate price levels.
Market Fundamentals: Addressing the recent surge in 10-year Treasury yields to 19-month highs, Bessent argued that the move is disconnected from the underlying economic fundamentals. He reiterated his commitment to preventing disorderly market behavior while overseeing fiscal operations.