Morning Juice – US Session Prep

Morning, Traders!
It is Monday the 25th of November, here are some things to look out for today.

Sentiment
Stocks and Treasuries climbed as traders expected the newly appointed US Treasury Secretary, Bessent to bring a Wall Street attitude to the post, softening the returning president’s enthusiasm for broad tax cuts and trade tariffs.

US index futures rose at least 0.5%, while the 10-year Treasury yield fell 5bps to 4.35%.
The Dollar fell, as Bitcoin recovered from a weekend low.

The market movements represent a reversal of some of the characteristics that constitute the so-called Trump Trade, such as a rising Dollar and a booming Bitcoin.
The cooling enthusiasm for these assets comes as traders reduce hopes that the president-elect will decrease taxes and increase tariffs, moves that might keep interest rates high and strengthen the Dollar.

Bessent’s nomination has alleviated concerns about the new president’s inflationary agenda, which had triggered a selloff in government bonds, sending the benchmark Treasury yield to a four-month high.
The Key Square Group hedge fund manager has said he will support Trump’s tariff and tax cuts, but investors expect him to prioritize economic and market stability.

Docket
11:30 ET
US sells $81 bln 3-Month Bills
US sells $72 bln 6-Month Bills

13:00 ET
US sells $69 bln 2-Year Notes

Speakers
11:05 ET
ECB’s Centeno speaks at the CNN Portugal International Summit in Lisbon about fiscal and monetary policy focused on growth.

11:30 ET
ECB’s Lane delivers a keynote speech at the Bank of England Watchers’ conference 2024.

12:30 ET
ECB’s Nagel gives a keynote speech and joins a panel discussion in Dortmund.

14:00 ET
ECB’s Makhlouf gives a speech at the Society of Professional Economists annual dinner.

Good luck!