Treasury yields 'really, really high' but can fall soon: Bessent advisor
David Zervos, a senior advisor at the U.S. Treasury, stated that current high Treasury yields are likely to decrease in the future despite recent surges. He attributed some of the market pressure to increased corporate spending on artificial intelligence infrastructure.
Why it matters
Understanding the drivers of Treasury yields is critical for assessing the health of the economy and the future of consumer borrowing costs.
U.S. Treasury yields are likely to cool off after a surge to multidecade highs that alarmed bond traders and pressured consumer borrowing power, according to David Zervos , the Wall Street veteran who recently took a senior role in the Treasury Department.
"These real yields are really, really high by any historic standard, so I think we have some room to come down in the future," Zervos, a counselor to Treasury Secretary Scott Bessent , said Thursday on CNBC's "Power Lunch."
Zervos' comments come after the 10-year and 30-year U.S. Treasury yields have marched to 24-year highs over recent days. Yields in the global bond market have been on a tear as expectations grow for central banks to hike interest rates and corporations keep borrowing money to build out artificial intelligence infrastructure.
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