Bessent Pushes Back on US Debt Fears, Citing Economic Growth

US Treasury Secretary Scott Bessent is pushing back against concerns about the country's rising debt and Treasury yields, arguing that the strength of the US economy is being overlooked.

US Treasury Secretary Scott Bessent has pushed back against concerns about Treasury-market stress and the country's rising debt burden. [Photo: U.S. Department of Treasury Facebook]

In a Reuters interview, Bessent dismissed concerns about turmoil in the US government bond market, saying he was “not sure where the bond market turmoil is.”

He argued that the US bond market had been the best-performing among major global peers in 2026. 

Bessent also pointed to continued US economic growth despite large budget deficits. His comments came as Treasury yields rose amid concerns about inflation, government borrowing and the sustainability of public finances.

The benchmark 10-year Treasury yield was around 4.75% on Aug. 31 and rose to 4.79% on Sept. 1, according to US Treasury data.

The 30-year yield reached 5.27% on Sept. 1. 

The US economy expanded at an annualized rate of 1.5% in the second quarter of 2026, according to the Bureau of Economic Analysis, after growing 2.1% in the first quarter.

Consumer spending, investment and exports contributed to second-quarter growth, while government spending declined. 

The figures support Bessent's argument that the US economy continues to expand, although growth slowed from the first quarter.

At the same time, higher Treasury yields can increase the government's borrowing and refinancing costs, meaning economic growth does not eliminate concerns about the country's debt burden.

Bessent has also defended the Treasury's use of debt buybacks as a way to manage market liquidity and volatility. The Treasury plans to double the size of its long-term bond buybacks to $4 billion per operation beginning Sept. 10.