On the show today, we've got three M's, not the company, markets, magazines, and murals.

From American public media, this is Marketplace.

In Baltimore, I'm Amy Scott in for Kai Rizdal. It's Monday, November 25th. Good to have you with us.

We talk about the bond market a lot on this show because the $28 trillion treasury market tells us a lot about the global economy and where investors think it's headed. And that's where we're going to start as the market reacts to

President-elect Donald Trump's choice for Treasury Secretary, hedge fund billionaire Scott Bessent.

Bond yields had been rising steadily since September, as strong economic data and then Trump's

reelection had investors worrying about inflation. But as Marketplaces Mitchell Hartman reports,

yields have been coming down more recently. Up until the announcement of hedge fund manager Scott

Besant as Trump's treasury pick, investors were focused intensely on

inflation and whether it might soon surge higher again. In part, because of what the incoming

Trump administration is expected to do, says Thomas Urano at Sage Advisory. Tax cuts, tariff, immigration,

the market generally preceding the Trump administration to embark on policy that might add to inflationary pressures, add to growth, but also add to the deficit.

It brings into question whether the Fed is going to continue cutting rates.

There's a bit less worry now that investors expect Scott Besson to hold the most important

economic position in the new administration, says Urano.

It's just a little bit of a relief rally.

He viewed more as a moderating force on some of the tax tariffs and deficit concerns.

In particular, Besson is seen as ready to advocate for a balance between Trump's

stimulatory wishlist and fiscal reality, says Jennifer Lee at BMO capital markets.

He said his first priority is delivering on all the tax cuts the president-elect has promised

instead of tariffs. The fact that he also wants to cut spending is also encouraging,

as opposed to spending,

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