No way for Bessent to control yields given the U.S. deficit: Analyst

• US Treasury Secretary Bessent cannot control overall yield levels due to the US fiscal deficit, though he can influence the yield curve's shape.
• Current US Treasury yields, including the 10-year near 5%, are seen as 'more normalized' given strong US nominal growth and earnings.
• The analyst does not foresee a 'bond market event' in the US similar to the UK, citing the market's importance and stability.

Matthew Rees of L&G Asset Management discusses the US bond market, noting that Treasury Secretary Bessent cannot control overall yield levels due to the large US fiscal deficit. He suggests current yields are more 'normalized' given strong US nominal growth and earnings, and dismisses the likelihood of a UK-style bond market event for the US.