Bessent "puts out the fire": Rising US Treasury yields are a global phenomenon, dismisses AI bubble concerns.

US Treasury Secretary Bessent "puts out the fire": Rising US Treasury yields are a global phenomenon, dismisses AI bubble concerns. US Treasury Secretary Bessent defended the recent rise in Treasury yields, refuted the AI bubble narrative, and hinted that the US government may provide financial assistance to more allied countries in the future. The 10-year US Treasury yield touched its highest level since 2002 earlier this week. Nevertheless, Bessent said in a media interview that the current interest rate trend is a global phenomenon and there is no need for excessive concern. Bessent stressed that this round of increases is not unique to the United States, and that there are no signs of markets selling US Treasuries and shifting to German or Japanese government bonds. On the economic front, he argued that the external shock from the Iran war has masked the underlying resilience of the US economy, with consumer spending strong and median wage growth roughly in line with inflation. The remarks came against the backdrop of months of sustained pressure on the US Treasury market. High oil prices, concerns about fiscal health, and a surge in AI spending have combined to push up borrowing costs. Mortgage rates have far exceeded 7%, diesel prices have hit a record high, and the impact of inflation pressure on ordinary voters is translating into political risk for the Trump administration and Republicans in the November midterm elections. Rising Yields: Global Linkage, Not Unique to the US In the interview, Bessent clearly distinguished between a "systemic rise" and an "abnormal rise." He said: If it were some kind of unique, abnormal rise, I would be worried, but we are not seeing that. He also acknowledged: I cannot control the bond market. What I can do is get people to slow down and think calmly. Weak employment data released on Friday brought some relief to the market, but US Treasuries had already suffered months of selling, with the 10-year benchmark rate briefly rising to a more than two-decade high. Bessent attributed part of the current pressure to fuel price increases caused by the Iran conflict, and expected that as the war enters its eighth month, the energy shock will eventually fade, with "oil prices to be more adequately supplied." Opening More "Argentina-Style" Financial Rescues, Dismissing AI Bubble On diplomatic and financial policy, Bessent defended the Trump administration's intervention in Argentina and said he did not rule out similar rescues for other countries in the future. Last year, the United States stepped in to buy pesos and provided a $20 billion swap line to President Javier Milei's government, helping Argentina stabilize its exchange rate and avoid a full-blown economic crisis. Bessent said: I think Argentina's stabilization has driven a historic shift in Latin America, with an unprecedented number of Latin American countries standing with the United States. So can we do this again? Of course we can. He also mentioned US assistance to Japan in supporting the yen, including the two countries' first coordinated joint yen-buying intervention since 1998. In response to market concerns that AI spending is overheated and that there is a bubble, Bessent responded directly. He argued that leading tech companies such as Microsoft, Google, and Meta are investing large amounts of capital and generating considerable revenue growth for companies such as Anthropic and OpenAI, which is fundamentally different from a bubble with no fundamental support. In his view, the AI investment boom has solid commercial logic, while the current macroeconomic tightening pressure stems more from geopolitical energy shocks. As the Iran conflict eventually subsides and energy prices fall, this external disturbance is expected to gradually fade. This article is reprinted from "Wall Street See"; GMTEight editor: Li Fo.