Bessent sees no spillover from France bond market’s turmoil

US Treasury Secretary Scott Bessent said he doesn’t anticipate a spillover from the French bond market, which has seen surging yields that have in turn driven a broader conversation about the European nation’s finances.

“I don’t anticipate a spillover from what’s happening in France,” Bessent said on 2Way Tuesday. “The French have a tough hand, but President Macron’s economic team, whom I know very well, are really first rate.”

France has been embroiled in protests in recent weeks, with the unrest turning more violent over the weekend and taking the government by surprise. This added pressure on the country’s debt, which has underperformed its peers under a government struggling to contain its budget deficit.


The extra yield investors demand to hold French 10-year bonds over safer German debt has risen as high as 159 basis points this month amid investor concerns about France’s debt.

“It’s not something that we plan on, but we are seeing a flight to quality into US Treasuries away from some of the other more concerning countries,” Bessent said.

Since the turmoil in France escalated from the end of last month, moves in that country’s bonds have affected Treasuries several times — either by pushing them down in tandem or causing flows into US debt as a haven trade.

Yields on the 10-year US bond have fallen around 20 basis points from an early October peak, when they reached the highest in more than two decades amid elevated energy prices and increased issuance by large companies for artificial intelligence needs.

Bessent reiterated that, in his view, the US bond market “has been the best performing in the world” compared to its peers under President Donald Trump, with “four of our strongest bond auctions in the past 20 years.”

Read more: Aerospace and military contractors raise 2026 profit forecasts

Elevated yields have drawn up US mortgage rates since they are benchmarked to the 10-year Treasury, pushing borrowing costs to well above 7% again. Pending sales of existing US homes fell in September to a record low in records going back to 2001, data released Tuesday showed.

Elevated energy prices due to the war with Iran have also driven up yields on US treasuries.

“We will get to the other side of this and I think that mortgage rates will come come down,” Bessent said about the energy shock.

He added that current legislation, including a recent housing package enacted by Congress that would keep institutional investors out of certain parts of the housing market, will help.

Read more: US stocks today: US stocks end higher as healthcare stocks lift Dow, tech a breather

The Trump administration has said that it wants to end the government conservatorship of mortgage giants Fannie Mae and Freddie Mac. The government is looking to act on that plan next year or the year after, Bessent said Tuesday.

The Treasury Secretary also said that he doesn’t plan on seeking election to higher office and intends to remain at his post through the end of Trump’s term.