U.S. Treasury Secretary Scott Bessent has dismissed concerns regarding turmoil in the U.S. Treasury market, arguing that worries over rising national debt and climbing bond yields overlook the strength of the U.S. economy and its fiscal outlook.

Reuters reported on August 30 (local time) that in an interview with the news agency, Bessent pushed back against growing alertness regarding the level of federal government debt and criticisms of the Treasury Department's efforts to manage market volatility.

Bessent stated, "First of all, I am not quite sure where this bond market turmoil is," adding that the U.S. bond market is performing "the best" among major global bond markets.

"Crucially, we are growing," he emphasized, highlighting that the U.S. economy continues to expand despite a large fiscal deficit.

He explained that rising energy prices and inflationary pressures stemming from the conflict with Iran pushed up interest rates, noting that these factors are expected to wane over time.

He also brushed off criticisms from some central bank policymakers who argued that the Treasury's decision to expand the scale of its debt buybacks distorted the market or deviated from the U.S. Treasury market's tradition of prioritizing predictable management.

He argued that the surge in 30-year Treasury yields to a 19-year high was detached from the economic fundamentals.

Bessent said, "I do not think I can change the equilibrium price. My job is to slow things down and ensure the market does not move in a disorderly fashion."

The yield on the 10-year U.S. Treasury note surpassed 4.75% during trading on the 31st, marking its highest level in 19 months since January of last year.

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