Bessent touts bond market as 10-year Treasury yield spikes

US Treasury Secretary Scott Bessent met with Bank of Japan Governor Kazuo Ueda on the sidelines of a G20 meeting in Asheville, North Carolina. According to the Treasury Department, Bessent emphasized the importance of sound monetary policy formulation and communication to anchor inflation expectations and avoid excessive currency volatility. He also expressed support for Japan's steps to address the undervaluation of the yen.

Bessent's comments come as the 10-year Treasury yield has spiked. The US Treasury Secretary downplayed short-term bond moves, saying that what happens over a month doesn't matter. He also noted the role of yen weakness in contributing to domestic inflationary pressures in Japan.

The meeting between Bessent and Ueda took place on Sunday, ahead of the Bank of Japan's policy meeting on September 17-18. According to Channel News Asia and CNA - Business, Bessent's remarks reinforce the case for Ueda to argue for a rate hike at the upcoming policy meeting.

Brief written by urgent.news from CNBC World, FXStreet, Channel News Asia, CNA - Business — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.