The Treasuries' rally in response to President-elect Trump's Bessent announcement late on Friday pushed yields on 10-year Treasuries down about 14 basis points, the most since early August. Two-year yields also tumbled, reducing the dollar's interest rate advantage.

Trump's nominee to run the Treasury faces a tall order—dealing with mounting debt, implementing an aggressive tariff regime, and navigating a thorny relationship with the Federal Reserve.

Scott Bessent’s Treasury nomination boosts market optimism with stable yields, a stronger dollar, and a tempered outlook for gold.