Bessent Has Limited Options to Halt Climb in Treasury Yields

Treasury Secretary Scott Bessent is facing what may become his biggest financial-market test yet, in the form of a steady increase in benchmark Treasury yields that’s generating economic headwinds and leaving him with few easy options.

The former hedge fund manager has developed a reputation since taking office for tamping down sharp market moves, from US bonds and stocks to Japan’s yen and Argentina’s peso. Vishal Khanduja at Morgan Stanley Investment Management is among those labeling him a “volatility seller.” Bessent’s boss, President Donald Trump, put it more simply in October: “He soothes the markets.”

The $31 trillion Treasuries ...