Treasury Secretary Scott Bessent downplayed any anxieties concerning a recent debt buyback operation that was smaller than anticipated and also dismissed worries about a rise in yields. In an interview, Bessent asserted that the Treasury market is in "very good shape," citing the strong performance of two recent auctions and noting that bonds have exhibited unusually high strength. This statement, made on September 11, 2026, reinforced his confidence in the stability of the bond market.
Earlier in September, Bessent had explained that his decision last month to expand a buyback program for older US government securities was a strategic move to calm a "fever" in the bond market. Speaking at a Breitbart News event, he clarified that his role was to help guide the market back towards equilibrium, acknowledging that while he couldn't alter the fundamental equilibrium price, nothing in markets remains perpetually in equilibrium.
Bessent, who joined the Trump administration last year, brings significant market experience and a history of bold financial maneuvers, including his involvement with George Soros in betting against the British pound in 1992. However, his approach to managing US debt, particularly his insistence that faster economic growth can resolve fiscal challenges, has drawn skepticism. Critics argue that historical data suggests this growth-centric solution might not provide a credible answer to the nation's mounting debt, a stance Bessent has championed, particularly during his leadership of the G20.
