Bessent Faces House Democrats Over 5% Treasury Yields, $100 Oil and Buyback Criticism
During a hearing for oversight by the International Monetary Fund, Treasury Secretary Scott Bessent encountered pushback from House Democrats concerning escalating borrowing costs and energy expenses. The 10-year Treasury note hit 5% for the first time since 2007, and the average rate for a 30-year mortgage exceeded 7%. Crude oil prices rose above $100 per barrel, pushing the national average gas price to $4.32 per gallon. Rep. Ayanna Pressley challenged Bessent's integrity, while Rep. Maxine Waters criticized his attempts to stabilize Treasuries. Bessent defended the purchases of Treasury bonds and revealed a $4 billion minimum for longer-dated buybacks. Meanwhile, Democrats worked on a memo regarding inflation and tariffs, and Republicans highlighted a 4.1% unemployment rate and tax cuts affecting 64 million returns.
Key facts
- The 10-year Treasury note reached 5% by midday Tuesday, a threshold last breached in 2007.
- The average 30-year fixed mortgage rate crossed 7% the prior week.
- Crude oil climbed above $100 a barrel amid renewed fighting in the Iran war.
- The national average pump price hit $4.32 per gallon on Monday, $1.14 higher than a year earlier.
- AAA data show diesel at $6.23 a gallon, up $2.54 year over year.
- Treasury doubled the minimum size of longer-dated buyback operations last month to a $4 billion floor for 10-to-30-year bonds.
- Stanley Druckenmiller called the buyback expansion a "mistake" driven by "price management."
- The 10-year yield has climbed roughly 10 basis points since the buyback announcement.
- Bessent cited a 4.1% jobless rate, steady payroll gains and an S&P 500 up about 27% since Trump's second inauguration.
- Tax cuts enacted last year have been claimed on upward of 64 million returns.
Entities
Artists
- Scott Bessent
- Ayanna Pressley
- Maxine Waters
- Stanley Druckenmiller
- Donald Trump
Institutions
- Treasury Department
- House Financial Services Committee
- International Monetary Fund
- CNBC
- Semafor
- AAA
- S&P 500
Locations
- Massachusetts
- California
- Iran
- United States
Sources
- Quartz —