Treasury Secretary Scott Bessent is scheduled to appear on CNBC's 'Squawk Box' on Monday morning, following a meeting with Chinese Vice Premier He Lifeng. This meeting is significant as it precedes a summit between President Trump and Chinese President Xi Jinping, where discussions on shared risks related to artificial intelligence are expected.
Bessent recently noted a successful Treasury buyback of over $5 billion in 10-year and 20-year Treasury notes, despite rising yields that have increased by about 100 basis points since the onset of the U.S. and Israel's conflict with Iran.
The yield on the benchmark 10-year Treasury surpassed 5% for the first time since 2007, affecting long-term borrowing costs, including mortgage rates, which have now exceeded 7%. These rising yields and fuel prices are causing concern among Republicans about their electoral prospects in the upcoming midterms.
Additionally, the Federal Reserve raised benchmark interest rates to a target range of 3.75% to 4% in an effort to combat inflation, a move that Trump has criticized while simultaneously urging for rate cuts. Bessent's comments and the administration's economic strategies will be closely watched by investors for their potential impact on market conditions and consumer affordability