Treasury chief says U.S. bonds outperform global peers amid flat inflation outlook

During a policy event, Treasury Secretary Scott Bessent characterized the United States bond market as the best-performing in the world since President Donald Trump took office. He explained that Treasury repurchases target older, off-the-run bonds, improving liquidity and narrowing spreads, which he described as a regenerative process that encourages investors to buy newer issues. Bessent dismissed accusations that the Treasury was engaging in quantitative easing, emphasizing that his role is to steer the market back toward equilibrium rather than alter price levels.

He also noted that five-year forward inflation expectations have remained flat or declined, countering narratives of rising credit risk. According to Bessent, the lack of a shift toward German bonds demonstrates confidence in U.S. credit, supporting his claim of superior market performance.