U.S. Treasury Secretary Bessent on Sunday rejected worries that rising U.S. debt
is weighing on the Treasury market, saying “first, I’m not sure where the
alleged turbulence in the bond market is,” and noting U.S. Treasurers have
outperformed other major bond markets year-to-date. He said the U.S. is better
positioned than many developed peers because growth continues despite large
deficits, and that recent yield increases largely reflect energy-price and
Iran-conflict-driven inflationary pressure he expects to fade over time; he
added higher yields also signal confidence in the U.S. economy. Bessent
dismissed concerns from some central bank policymakers that the Treasury’s
unexpected increase in repo operations distorted markets or broke usual,
predictable Treasury market practices.
