Treasury Secretary Scott Bessent said Tuesday’s bond sell-off and higher interest rates largely reflect stronger U.S. growth prospects rather than rising inflation expectations. Speaking at the G20 (Group of 20 major economies) meeting of global finance ministers in Asheville, North Carolina, he said growth was reaccelerating and had performed better than expected despite the Iran conflict. Bessent later acknowledged that the sell-off was global and had intensified during the Asheville gathering, while saying it was difficult to isolate the contribution of Japan and other international forces. Japan’s 10-year yield reached 3% for the first time in three decades. Bessent said higher Japanese yields partly reflected policies that helped the country emerge from a prolonged deflationary trap. Faster growth can improve debt-to-GDP ratios by expanding the economic base, but EU commissioner Valdis Dombrovskis said governments still need to reduce deficits. He said fiscal support linked to strains from the Middle East conflict should be temporary and targeted. Former U.S. Treasury official Joe Lavorgna said faster growth was necessary for better fiscal conditions but questioned whether it would be sufficient.