U.S. bond market reacts lukewarmly to U.S. Treasury Secretary's 10-year yield pledge

GOLDEN FINANCE reports that U.S. Treasury Secretary Ben Bessent's pledge on Thursday to rein in the 10-year U.S. Treasury yield ran into some skepticism in the bond market, as inflationary pressures and expectations of a widening federal deficit threatened to overshadow efforts to curb borrowing costs. “While Trump wants lower rates, he's not going to ask the Fed to cut rates,” Besant said in an interview yesterday. “Both President Trump and I are focused on the 10-year U.S. bond yield.” But bond investors and analysts remain less convinced by Besant's comments, as Trump's trade and fiscal policies are expected to push up long-term Treasury yields despite falling energy prices and government spending cuts. “The bigger issue in composite inflation is services inflation, and the stickiness of inflation that has prevailed over the past few months,” said Padhraic Garvey, head of research for the Americas at Holland International Group. “The tariff agenda will only put upward pressure on prices and may, in fact, be more influential than energy price control programs,” he added.