Treasury Official Bessent Defends Yen Support Amid Rising Global Bond Yields

Treasury Secretary Scott Bessent told investors on Tuesday that the United States is "the house now" in its efforts to support the Japanese yen and invited market participants to bet against him if they wished. The statement came as the Treasury continues to deploy funds to stabilize the yen, a policy that has not yet been tested by market movements.

Despite Bessent's confidence, long-term bond yields have risen across major economies. Data from the European think tank Bruegel show that 30-year yields in the United States, Germany, France, Italy, the United Kingdom and Japan increased by 45 to 79 basis points between February and late August, with the U.S. rise of 58 basis points falling near the middle of that range.

Analysts attribute the broader increase in yields to a surge in demand for financing linked to the rapid expansion of artificial-intelligence and information-technology spending, rather than to specific policy actions by the current administration. The current level of long-term rates is lower than those recorded during the late-1990s technology boom, when inflation was low and the federal budget was in surplus.

Critics note that Bessent's public assurances may not align with the market's response, suggesting that continued rhetoric could erode credibility if it does not translate into measurable outcomes.