📈 Bond Market Bullish

This choice represented a shift for the bond market.

Treasury Secretary Appointee

We learned over the weekend that Trump is choosing Scott Bessent for Treasury Secretary.

Unlike other cabinet picks, this one is drawing approval from both sides of the aisle.

Bessent has worked with both Democrats and Republicans in the past, working for Soros Fund Management and now serving in the Trump administration.

Here are some quotes from noted business minds on the Bessent appointment.

Bessent Benefits

Specifically, Bessent is seen as a force that will mediate Trump with regard to tariffs.

While we got news last night that Trump is likely to impose a 25% tariff across the board with key trading partners, Bessent views tariffs as a negotiating point, but understands their risk in raising prices and bringing on inflation.

This provides some level of certainty that Trump is using this tariff threat as a negotiating piece, though that does not mean the market cannot/will not react negatively to the news today.

As a result of his appointment, you can see that we are seeing bonds rallying such as TLT.

As far as trading this week, expect volume to lighten up into the end of the week. I analyzed the market and what I am seeing as far as trades go here: