Bessent Concedes Bond Market Defiance After Yield Spike
U.S. Treasury Secretary Scott Bessent has softened his stance on bond markets after his aggressive rhetoric failed to curb rising yields. Following a sharp sell-off where 10-year yields jumped nearly 50 basis points, Bessent admitted in a recent interview that he cannot control the bond market, a notable shift from his earlier declaration that 'I am the house now.' This concession follows the 10-year yield reaching its highest level since 2007, despite Treasury buybacks and verbal pressure. While Bessent now emphasizes that he 'trusts the process' and that 'you win over time,' investors remain unnerved by a $40 trillion national debt and inflation driven by the ongoing Iran war. The Federal Reserve has raised rates to 4% to combat inflation, directly contradicting the administration’s desire for lower borrowing costs, while global central banks, including the ECB and Bank of Japan, are also tightening policy.
