Treasuries rally as investors see Bessent as fiscal hawk
Dollar eases from twoyear high, due some consolidation
Market sees more policy easing from ECB, less from Fed

SYDNEY, Nov 25 Reuters The dollar relinquished a little of its recent gains on Monday as the pick for U.S. Treasury secretary seemed to reassure the bond market and pulled yields lower, shaving some of the currency39;s rate advantage.

Yields on 10year Treasuries slipped to 4.351, from 4.412 late Friday, as Presidentelect Donald Trump39;s choice of fund manager Scott Bessent was welcomed by the bond market as an old Wall Street hand and a fiscal conservative.

However, Bessent has also been openly in favour of a strong dollar and has supported tariffs, suggesting any pullback in the currency might be fleeting.

Bessent has publicly lauded dollar strength following news of Trump39;s election win, so I admit to being somewhat perplexed by the suggestion that the weakening in the dollar is because of his appointment, said Ray Attrill, head of FX research at NAB.

He is an avowed fiscal hawk, so perhaps that has something to do with it, but seeing is going to be believing in this regard.

The dollar was likely due some consolidation having risen for eight weeks in a row for only the third time this century and many technical indicators were flashing overbought.

The index was last down 0.5 at 106.950, having hit a twoyear peak of 108.090 on Friday. The dollar dipped 0.4 on the Japanese yen to 154.11 , and…