US Treasury Secretary Bessent defends dollar dominance as 10-year yield hits 5%

September 21, 2026 at 05:44 PM2 min

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Treasury Secretary Scott Bessent defended the U.S. economy and dollar dominance on Sunday, citing the dollar's role in 89.2% of FX transactions and strong growth data. His remarks came as the 10-year Treasury yield reached 5%, prompting critics to accuse the Treasury of yield suppression through bond buybacks. Bessent rejected that interpretation, saying the buybacks aim to improve liquidity and manage debt maturities.

Key Facts

The U.S. dollar is on one side of 89.2% of foreign-exchange transactions, according to data cited by Treasury Secretary Scott Bessent.
The 10-year U.S. Treasury yield reached 5% on Sunday, a multiyear high.
Bessent said Treasury bond buybacks are intended to improve market liquidity and manage debt maturities, not to suppress yields.
Saudi Arabia's exit from the China-backed mBridge digital currency platform was portrayed by Bessent as a victory for dollar dominance, though the kingdom said it had merely completed a planned trial in May 2025.
Bessent highlighted 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.

Dollar Dominance Defense

Treasury Secretary Scott Bessent pushed back against a bearish assessment of the U.S. economy by citing the dollar's role in 89.2% of foreign-exchange transactions and the prevalence of dollar-pegged stablecoins. He highlighted data amplified by conservative commentator Lawrence Kudlow in a post on X, noting that the U.S. dollar remains on one side of 89.2% of FX transactions while the overwhelming majority of stablecoins are pegged to USD. Bessent also cited 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. His remarks were a direct response to a recent New York Times report outlining structural risks in the country's financial position.

Treasury Yield Surge

U.S. Treasury yields reached multiyear highs on Sunday, with the 10-year yield hitting 5%. The Treasury has been repurchasing longer-term bonds, leading critics to accuse Bessent of attempting to suppress yields. Bessent rejected that interpretation, maintaining that the buybacks are intended to improve liquidity and manage the maturity structure rather than control a Treasury market worth more than $30 trillion.

mBridge Withdrawal

Bessent portrayed Saudi Arabia's exit from the China-backed mBridge cross-border digital currency platform as a victory for dollar dominance, according to the Financial Times. Saudi Arabia said its involvement ended after completing a planned proof of concept in May 2025. The platform continues to expand elsewhere, making the withdrawal a symbolic victory for Washington rather than evidence that the broader project is collapsing.