Bond futures rise on Bessent pick for US Treasury

SINGAPORE (Reuters) – Bonds rose, U.S. stock futures rose and the dollar fell in early trade on Monday as investors welcomed the appointment of fund manager Scott Bessent as the next U.S. Treasury secretary, believing he will be the voice of markets in Washington.

10-year Treasury futures rose 13 points ahead of the cash open and S&P 500 futures rose 0.4%, narrowly missing a record high, while the dollar weakened across the board, lifting the battered euro 0.5 % up to $1.0484.

“The market believes Bessent is in good hands,” said Stephen Spratt, strategist at Societe Generale, which was a relief as the risk of a more unorthodox pick was taken out of the markets.

The Australian share market has reached record levels. Futures pointed to a stronger open in Japan and a weaker start in Hong Kong. Trading this week is likely to be eased by the Thanksgiving holiday on Thursday.

President-elect Donald Trump’s appointment of a Treasury secretary was closely watched in bond markets as expectations of tax cuts, as well as tariffs and an immigration crackdown, fueled concerns about inflation and large deficits.

Bessent told CNBC earlier in November, before he was elected Treasury secretary, that he would recommend “a gradual increase in tariffs.”

In an interview with Bloomberg, he advocated for the United States to get out of heavy debt, and in the Wall Street Journal for tax reform and deregulation, in particular to stimulate bank lending and energy production.

He spent his career working for billionaire investor George Soros and notorious short seller Jim Chanos, as well as running his own hedge fund.

The yen rose about 0.4% to 154.15 per dollar.

The Australian dollar jumped 0.6% to $0.6541 and the kiwi, which fell to a one-year low on Friday as bets on the central bank’s dovish stance increased, jumped 0.5% to $0.5862. The Reserve Bank of New Zealand will meet on Wednesday with a proposal to cut rates by 50bp, with markets suggesting a significant 75bp cut is likely. is approximately 1/3.

(Editing by Kim Coghill)