The markets have been rallying recently — including the bond market. The yield on the 10-year Treasury bond was down by 12 basis points at market close Monday, falling to 4.28%. That’s the lowest it’s been since early November, just after the election.
Keep in mind, interest rates on longer-term Treasury bonds (also 30-year mortgage rates) are heavily influenced by inflation and what investors think the Federal Reserve is going to do about it.
Leading up to the Fed’s first big rate cut in September, bond yields fell significantly. But as it looked more like a Donald Trump election victory was in the cards, yields rose again — on the expectation that Trump’s economic policies would juice economic growth.
Now, a new force is pushing Treasury yields down again: the announcement on Friday of President-elect Trump’s nominee for treasury secretary: hedge-fund billionaire Scott Bessent. Why…
