(Bloomberg) — US Treasuries have added to the gains spurred by the late-Friday announcement of Scott Bessent — a Wall Street veteran who investors expect will take the sting out of the administration’s more aggressive trade and economic policy proposals — as President-elect Donald Trump’s Treasury secretary choice.
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Monday’s rally trimmed yields by more than 10 basis points across the US curve, gaining momentum in New York trading amid a drop in oil. The dollar slumped by the most in more than two weeks before paring the loss.
“The market was so worried about someone a little more extreme,” Greg Peters, co-chief investment officer at PGIM Fixed Income, said. “This is a nominee who is capable and qualified and considered ‘the adult in the room.’ The market quite likes it.”
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Bessent, who runs macro hedge fund Key Square Group, has called for a gradual approach to implementing trade restrictions and has appeared open to negotiating the exact size of tariffs championed by the president-elect. In an interview with the Wall Street Journal, Bessent said his priority will be to deliver on Trump’s various tax cut pledges, while also cutting spending and “maintaining the status of the dollar as the world’s reserve currency.”
The dollar had notched its longest stretch of weekly advances in more than a year on Friday as…
