U.S. Treasury Secretary Downplays Bond Sell-Off Amid Market Turmoil

According to BlockBeats, U.S. Treasury Secretary Besent has downplayed concerns over the recent sell-off in U.S. Treasury bonds, stating that it is not a systemic issue. Besent noted that the market is currently experiencing a period of deleveraging, a situation he has frequently observed during his career in hedge funds. He emphasized that this is a characteristic of the fixed income market, where some heavily leveraged players are incurring losses and are forced to deleverage. In recent days, long-term Treasury bonds have been at the forefront of declines in the U.S. bond market, despite concurrent drops in the stock market, which contradicts their typical role as a safe haven. So far this week, the yield on 30-year U.S. Treasury bonds has surged by approximately 0.5 percentage points. Besent remarked, "I do not believe this is a systemic issue. I think the deleveraging occurring in the bond market is a concerning yet normal process."