Bessent Says Treasury Yield Surge Isn’t Serious as 10-Year Tops 4.788%

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Treasury Secretary Scott Bessent brushed off concerns about the bond market after long-term US Treasury yields climbed to their highest levels in years, saying inflation expectations remain well anchored.

Speaking in Asheville, North Carolina, on Sept. 1 during a Group of 20 finance ministers meeting, Bessent told Fox Business he does not see the US as being in a serious situation.

He said inflation expectations have stayed stable despite the recent rise in Treasury yields. The US economy is still posting solid growth and remains highly competitive in artificial intelligence, he added. In an interview with Reuters a day earlier, Bessent also rejected describing the recent moves as turmoil in the bond market.

Even so, long-term Treasury yields extended their climb. The 10-year Treasury yield rose 3 basis points in morning trading to 4.788%, the highest level since Jan. 14, 2025. The 30-year yield also gained more than 2 basis points to 5.272%, moving closer to its highest level since 2007.

The rise in long-term yields has been driven by a combination of factors, including higher oil prices linked to the war in Iran and concerns about US fiscal soundness. Increased corporate bond issuance by AI companies has also added to supply pressure in the debt market, pushing yields higher.