U.S. Treasury defends dollar dominance as 10-year yield reaches 5%

Traders Union
All News
Crypto
Treasury defends dollar as yield hits 5%

Highlights

Bessent highlights the dollar’s role in 89.2% of forex transactions, record U.S. median income, and the Atlanta Fed's 5.1% Q3 GDP estimate to counter bearish economic views.
He clarifies Treasury bond buybacks are aimed at market liquidity and debt management, not yield suppression, as 10-year U.S. Treasury yields spike to 5%.
Saudi Arabia's planned May 2025 exit from the mBridge digital currency project is framed by Bessent as symbolic, reinforcing dollar dominance despite the project's continuing expansion.

Dollar role and economic metrics underpin defense

As reported by CoinDesk, Bessent rejects a bearish assessment of the U.S. economy by pointing to the dollar’s presence on one side of 89.2% of foreign-exchange transactions and the dominance of dollar-pegged stablecoins. He also cites record median household income, a historically low official poverty rate, continued employment growth and the Atlanta Fed’s 5.1% annualized estimate for third-quarter GDP.

Bessent uses those indicators to counter concerns raised after a recent New York Times report on structural risks in the country’s financial position. In a post on X, he says the greenback retains an enduring global role even as investors focus on government borrowing costs and changing international payment systems.

Bond buybacks and payment rails stay in focus

Bessent says Treasury bond buybacks are meant to improve market liquidity and manage debt maturities, not to suppress yields. His comments come as the 10-year U.S. Treasury yield reaches 5%, prompting criticism that the repurchases are an attempt to influence a market valued at more than $30 trillion.

He also presents Saudi Arabia’s exit from the China-backed mBridge cross-border digital currency platform as a sign of continued dollar dominance. But Saudi Arabia says its participation ends after a planned proof of concept in May 2025, while the project continues to expand elsewhere, leaving the move as more of a symbolic win for Washington than evidence of a broader retreat.

Our earlier article on the U.S.–China economic talks ahead of the Trump–Xi summit outlined how both sides were exploring a limited U.S.-China AI Dialogue and other near-term deliverables amid broader policy and trade frictions. It also noted renewed AI safety concerns after disclosures around Google’s Gemini security testing, highlighting how fast-moving technology policy is becoming a key part of the bilateral agenda.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.