Scott Bessent believes deleveraging drives the U.S. Treasury market downturn

Scott Bessent attributes the decline in the U.S. Treasury market to normal deleveraging rather than foreign sales. He states that recent yield fluctuations are due to large players needing to reduce leverage amid losses, rather than immediate actions from foreign nations.

Bessent clarified that not every market fluctuation indicates a systemic crisis and highlighted historical leverage issues as context for current volatility. He suggested that Trump’s tariff changes were not directly influenced by the Treasury market’s performance.