Asheville, N.C. – On the eve of the Group of 20 finance ministers’ two‑day summit, Treasury Secretary Scott Bessent told Reuters that worries about turbulence in the U.S. government bond market are misplaced. He emphasized that the United States remains on a solid growth path even while running sizable budget deficits.
Bond market performance and yields
“First of all, I’m not sure where the bond market turmoil is,” Bessent said, noting that U.S. Treasury securities have been the best‑performing sovereign bonds among major economies this year. He added that the 10‑year Treasury yield has held steady around 4.73%, reflecting investor confidence rather than panic.
Long‑term yields have also stayed relatively flat despite heightened tensions between the United States and Iran in Asian trade routes. Bessent attributed recent yield pressure to higher energy prices and inflationary forces linked to the Iran conflict, which he expects to ease over time.
Buyback program and market stability
The Treasury announced a modest program of regular debt repurchases designed to smooth market volatility, especially in the thin‑trading month of August. Bessent said the department plans to double the size of buybacks of longer‑dated debt to $4 billion per operation, a step he believes will counteract the recent rise in 30‑year borrowing costs that have reached a 19‑year high.
He rejected criticism that the buyback strategy distorts market pricing or breaks with the Treasury’s tradition of predictable operations. “My job is to slow things down … and make sure that the market doesn’t get disorderly,” he explained.
International comparisons
Drawing parallels with other major central banks, Bessent pointed out that the European Central Bank under former President Mario Draghi and the Bank of Japan’s long‑standing bond‑purchase programs faced far less scrutiny. “They didn’t seem to have a problem when Mario Draghi did it in Europe,” he said. “They didn’t seem to have a problem when the Japanese bought up half their bond market.”
Outlook for the G20 gathering
As the G20 finance leaders convene in Asheville, Bessent highlighted the United States’ unique position among advanced economies: a growing economy paired with the ability to finance deficits responsibly. He urged fellow leaders to focus on the fundamentals that support market confidence, rather than reacting to short‑term headline concerns.
“What’s important, too, is that we are growing,” Bessent said, underscoring the administration’s belief that sustained economic expansion will keep Treasury yields anchored and preserve the United States’ fiscal credibility.
Local significance
The Asheville summit brings a wave of international attention and security resources to western North Carolina, offering local businesses a boost in hospitality demand. Community leaders have welcomed the event as an opportunity to showcase the region’s cultural heritage while reinforcing the city’s reputation as a venue for high‑level economic dialogue.
Overall, Treasury Secretary Bessent’s remarks aim to reassure both domestic and foreign investors that the United States’ fiscal outlook remains strong, and that the Treasury’s tools—such as targeted bond buybacks—are being used responsibly to maintain orderly markets.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
