U.S. Treasury Secretary Explains Bond Price Plunge: "Due to International Causes"

[Financial News] U.S. Treasury Secretary Scott Bessent emphasized that the recent continuous plunge in U.S. Treasury bond prices is due to "international causes."
According to the U.S. economic media outlet MarketWatch, Bessent attended a hearing of the U.S. House Financial Services Committee on the 15th (local time). When asked about the recent decline in government bond prices while meeting with reporters on his way to the hearing, he said, "It is due to international causes."
Later, Bessent acknowledged at a hearing that the plunge in 10-year Treasury bond prices "reflects the need to resolve the fiscal deficit problem." He argued that the U.S. Department of the Treasury's expanded repurchases to boost bond prices were successful, proving the credibility of the United States. "Look at the results of this measure," Bessent emphasized. "We conducted the two most successful Treasury bond auctions in 20 years. The U.S. bond market has been performing the best among developed nations since President Donald Trump took office."
Prices of long-term U.S. Treasury bonds are on a downward trend due to factors such as the national debt surpassing $40 trillion (approximately 54,552 quadrillion won) for the first time, the possibility of raising the benchmark interest rate amid inflation, rising international oil prices, and a concentration of investment in artificial intelligence (AI) in the capital market. The price of the 30-year U.S. Treasury bond hit a 19-year low on the 17th of last month, and the 10-year bond also reached its lowest level in 19 years as of the 14th.
Bessent announced last month that the U.S. Department of the Treasury would expand its repurchase program for long-term U.S. bonds, and on the 9th, claimed that the scale would be increased by up to three times. However, U.S. Treasury prices have struggled to rebound even after the Treasury Department's announcement.
Meanwhile, Bessent mentioned the recent strength of the dollar during a hearing on the 15th. He remarked, "A strong dollar is not simply a price displayed on a screen, but a series of actions." He added, "This administration is creating regulatory certainty, tax certainty, trade certainty, and energy certainty, which is bringing trillions of dollars into the United States."
At the same time, when asked about the connection between the Iran war, rising oil prices, and inflation, Bessent claimed that the responsibility for inflation lay with the Joseph Robinette Biden Jr. administration two years ago. He went on to emphasize that the U.S. economy had improved under the Trump administration.
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