Third, how high will rates go? In my view, Scott Bessent, U.S. Treasury secretary, deserved applause last year for keeping 10-year Treasury rates at about four per cent. He did this by using tactics such as shorter issuance maturities. But such methods are no longer working: 10-year rates have jumped above five per cent. Bessent himself insists, though, that AI-powered growth will soon cut the deficit, reducing the pressure.






