If something characterizes Donald Trump since his victory in the presidential elections, it is the appointment of those close to him during the electoral campaign to positions of responsibility in the next American administration. and he new Treasury Secretary Scott Bessentwas not going to be an exception. But his appointment is also appreciated by the market, as demonstrated by market developments. sovereign debt and dollar since his name was announced.
The US dollar begins this week lower against the euro after having experienced several sessions during which it continued to rise. The European currency traded for more than $1.09 on November 5, election day in the United States. And at the end of last week It was exchanged for less than 1.04 dollars which implies a rise in the dollar of almost 5% since Trump defeated Kamala Harris at the polls.
He dollar It achieved its greatest position of strength in two years against the next ten most widely used currencies in the market, including the Euro, British Pound, and Swiss Franc, among others. In fact, the market saw how the euro fell to its lowest level in more than two years last week. This Monday the dollar stops its particular course rally until you see a crossing in zone 1.05.
It is clear that Scott Bessent’s profile as an experienced investor pleased the market, as Bankinter points out, due to the evolution of the debt market at the end of last week and in the first moments of the week which begins this Monday. And that’s it Bessent is a Wall Street veteran with experience in hedge fund management. “He is one of the world’s leading international investors and geopolitical and economic strategists,” described Trump himself during the presentation of his new Treasury Secretary, who has not yet been confirmed by the US Senate.
The truth is that the US sovereign bond yields on the secondary debt market, they stopped their upward race. These purchases have been imposed since Besset’s arrival, as the market understands that the new Treasury Secretary will advocate for a more gradual implementation of any trade restrictions, via tariffs, within the administration Trump, according to Société Générale in a note collected by Bloomberg.
The ten-year American bond offers a yield of 4.35%, ten points below the maximum observed after the Republican victory. Shorter-term debt, historically more sensitive to changes in monetary policies central banks, goes in the same direction. Two-year securities are also below 4.35% and twelve-month debt at 4.42%.
