Treasury Secretary Scott Bessent told a congressional hearing on Tuesday that the U.S. dollar's strength rests on the credibility of the system and policy certainty, pointing to two of the most successful Treasury auctions in 20 years. The same day, he told reporters that rising bond yields stem from broader global factors, as the 10-year Treasury yield hit levels not seen since 2007.
Bessent ties dollar strength to policy certainty
U.S. Treasury Secretary Scott Bessent said on Tuesday that the dollar continues to thrive as a reserve currency, with rising global transaction volume reflecting confidence in the administration's approach. He made the remarks at a congressional hearing.
According to Reuters: "A strong dollar is not a price on a screen". Bessent said it instead reflects a set of behaviors, citing regulatory, tax, trade and energy certainty that he said is bringing trillions of dollars into the US. Russia and China have decreased their reserve holdings, though other countries are active, he said.
Bessent also pointed to demand for U.S. government debt. He said the country just had two of the most successful Treasury auctions in 20 years, which he said speaks to global confidence in the system.
Bond yields hit 2007-era peaks
Rising bond yields, however, came up separately the same day. Speaking to reporters before the hearing, Bessent said rising bond yields were due to global factors, without offering further detail on specific causes.
His comments came as U.S. 10-year Treasury yields hit peaks not seen since 2007 on Tuesday. The hearing was nominally focused on the international finance system, including reforms to the IMF and World Bank, but was expected to cover the yield rise alongside the administration's financial measures against Iran.
Hearing interrupted, Iran talks continue
As the hearing got underway, protesters stood up one after another to call for an end to sanctions on Iran and the war, forcing Bessent to stop and restart his opening statement before they were removed from the room. Bessent told the committee the administration had held private discussions with China on Iranian financial links, and said President Donald Trump's talks on Iran would continue with China's Xi Jinping at a summit later this month.
Sources: Economy News (Investing.com), Economy News (Investing.com)
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