TREE NEWS update: US Treasury Secretary Scott Bessent said data showing continued strong foreign demand for US assets contradicts claims that capital is fleeing the country, pointing to sustained Treasury auction demand. Bessent said the dollar accounts for 89.2% of global foreign exchange trading, and that Treasury buybacks are meant to add market liquidity and optimize the debt maturity profile rather than directly intervene in the over $30 trillion Treasury market.
Bessent Rejects ‘Capital Flight’ Claims, Cites 89.2% Dollar Share
Bessent's framing matters less as a rebuttal of capital-flight talk than as a signal of how the Treasury wants its own market operations read: buybacks as plumbing, not intervention. The dollar's trading share is a flow metric, not a reserve one, so it does little to settle the underlying debate about foreign appetite for US assets. For RWA and tokenized-treasury markets, the operative question is whether official liquidity support keeps the short end deep enough to anchor on-chain yield products. Whether auction demand stays strong is the open question.
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