U.S. Treasury Secretary Scott Bessent's pledge to contain yields on 10-year Treasury notes met some skepticism in the bond market on Thursday, as inflationary pressures and expectations of a widening federal deficit threaten to outweigh efforts to curb borrowing costs.

It's the budget. Treasury Secretary Scott Bessent said earlier this week that the Trump administration wants to focus on lowering borrowing costs by getting the 10-year Treasury yield down, not by pressuring the Federal Reserve to cut short-term rates.

The Trump administration's emerging focus on long-term Treasury bond yields may show growing sensitivity to market constraints that could impede President Donald Trump's economic plans, while also getting the Federal Reserve out of his direct line of fire.

The Trump administration isn't looking to clash with the Federal Reserve over interest rates, Treasury Secretary Scott Bessent told said. Instead, the focus of the White House is on lowering Treasury yields as a way to ease borrowing costs.