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Treasury Secretary Bessent praises U.S. bond market despite rising 10-year yields

At a G20 finance meeting, Scott Bessent highlighted U.S. bond performance as yields hit their highest level in nearly 20 months amid global inflation concerns.

The short version

  • Treasury Secretary Scott Bessent claimed at a G20 finance meeting that U.S. bonds have outperformed other major markets since Donald Trump took office.
  • The remarks coincided with the 10-year U.S. Treasury yield reaching a 20-month high during a broader global bond selloff.
  • Global borrowing costs have been pushed upward by uncertainty over Federal Reserve interest rate policy and elevated oil prices linked to U.S. military strikes in Iran.
  • Investors and policymakers are monitoring whether rising yields and energy prices will reignite sustained inflationary pressures.

Key facts

  • Treasury Secretary Scott Bessent stated at a G20 finance gathering in North Carolina that the U.S. bond market is the best-performing among major countries since President Trump took office.[CNBC]
  • The benchmark 10-year U.S. Treasury yield climbed to its highest point in nearly 20 months, rising approximately 18 basis points since Trump's second inauguration.[CNBC]
  • Yields on sovereign debt rose across international markets, with some nations experiencing borrowing costs at multi-decade highs.[CNBC]
  • U.S. military strikes near the Strait of Hormuz in Iran contributed to higher oil prices and renewed inflation worries, exerting upward pressure on bond yields.[CNBC]
  • Bessent and Federal Reserve Chair Kevin Warsh used the two-day G20 summit to focus on strategies to stimulate economic growth.[CNBC]

What remains uncertain

  • The future direction of Federal Reserve monetary policy and its impact on borrowing costs remain unresolved.[CNBC]
  • The duration and economic fallout of military tensions in the Strait of Hormuz and their effects on global oil markets are uncertain.[CNBC]

Sources