Bessent says dollar stays strong, points to two top debt auctions in 20 years
Treasury Secretary links reserve declines to Russia and China and says fiscal consolidation is approaching
Published
Treasury Secretary Scott Bessent said the dollar remains strong in global transactions and pointed to the completion of two of the most successful debt auctions in the past 20 years.
Bessent said a decline in dollar reserve holdings is mainly the result of moves by Russia and China, not a broader shift away from the currency. He also said fiscal consolidation is approaching, without giving further detail.
His comments came with the 10-year Treasury yield trading near 5%. Yields had surged to their highest levels since 2023 despite efforts by the administration to contain them through bond buybacks.
Bessent's remarks on the dollar and the auctions fit with the administration's broader messaging on economic resilience during tensions with China. By framing the reserve declines as limited to Russia and China, and by pointing to fiscal consolidation ahead, he signalled confidence in the Treasury's ability to manage its debt load. For markets, the statements are largely neutral: they track the recent optimistic tone on growth and bond performance rather than pointing to any shift in policy.