If something has characterized Donald Trump since he won the presidential elections, it has been the appointment of those close to him during the electoral campaign to positions of responsibility in the next United States administration. and he new Treasury Secretary Scott Bessentwas not going to be an exception. However, his appointment is also liked by the market as demonstrated by the evolution of the sovereign and dollar debt since his name was announced.
The US dollar starts this week lower against the euro after having had several sessions in which it did not stop rising. The European currency was exchanged for more than 1.09 dollars 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 an advance for the dollar of almost 5% since Trump defeated Kamala Harris at the polls.
He greenback It reached its greatest position of strength in two years against the next ten most used market currencies, including the euro, the pound sterling and the Swiss franc, among others. In fact, the market saw how the euro sank to lows in more than two years last week. This Monday the dollar stops its particular rally until seeing a crossing in the 1.05 area.
It is clear that Scott Bessent’s profile as an experienced investor has 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 that begins this Monday. And it is that 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,” Trump himself described in the presentation of his new Treasury Secretary who has yet to be confirmed by the United States Senate.
The truth is that the US sovereign bond yields in the secondary debt market they stopped their upward race. The 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, from within the Trump administration, according to Société Générale in a note collected by Bloomberg.
The ten-year US bond offers a yield of 4.35%, ten points below the maximum seen after the Republican victory. The shortest-term debt, historically more sensitive to the evolution of monetary policies of the central banks, moves in the same direction. Two-year securities are also below 4.35% and twelve-month debt at 4.42%.
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