Updated
Updated · The New York Times · Sep 22
Bessent Defends U.S. 10-Year Bonds as Yields Rise Less Than 5 Peers
Updated
Updated · The New York Times · Sep 22

Bessent Defends U.S. 10-Year Bonds as Yields Rise Less Than 5 Peers

3 articles · Updated · The New York Times · Sep 22

Summary

  • Scott Bessent told Congress the United States had the developed world’s best-performing bond market, measuring success by how much 10-year Treasury yields rose versus Britain, Germany, France, Italy and Japan.
  • Since Trump’s second term began, the 10-year Treasury yield increased less than those five peers’ comparable yields, according to a senior Treasury official explaining Bessent’s claim.
  • Longer-term Treasury yields are still near a two-decade high, pushing bond prices down and keeping borrowing costs elevated for retirees holding bonds and home buyers seeking mortgages.
  • More recent comparisons weaken the boast: Germany has had the best-performing bond market this year, and Japan saw the smallest rise in yields in the month before Bessent’s Sept. 14 remarks.
  • Across a wider set of countries, U.S. bond performance looks mixed, even if Treasuries have broadly held up better than most peers since Trump returned to office.

Insights

How does a top-performing bond market benefit everyday consumers if it simultaneously drives up mortgage rates and borrowing costs?
With foreign investors pulling back, who will step up to finance the massive U.S. deficit before liquidity dries up?