Treasury Secretary Scott Bessent has repeatedly claimed the U.S. bond market is the "best-performing in the developed world," testifying to the House Financial Services Committee on Sept. 14. His assessment compares 10-year Treasury yield increases against Britain, Germany, France, Italy, and Japan since the start of the Trump administration's second term. By that measure, U.S. yields rose less than peers.

However, the 10-year yield has reached its highest level since 2007, pushing down bond prices and raising borrowing costs for mortgages and consumers. Since the start of 2026, Germany has outperformed, and Japan saw the smallest yield rise in the month before Bessent's comment. Emerging-market debt, including China, has also outperformed U.S. Treasuries this year.

Alan McKnight, chief investment officer at Regions Bank, described the U.S. as "the best house in a bad neighborhood." Bessent specified "major" or "developed" markets, excluding emerging markets. Much of the yield rise stems from factors outside his control, including the war in Iran, fiscal deficit concerns, and growth expectations. Representative Maxine Waters and Representative Jim Himes questioned Bessent on affordability and rising costs.