Donald Trump has lately made his feelings clear about Federal Reserve Chairman Jerome Powell, repeatedly criticizing his approach to monetary policy. . But the big battle to watch in the new year may instead be between the president-elect and the bond market. During his reelection campaign, Trump promised to implement broad tariffs on all imported goods, including especially high tariffs on goods from China.
Bonds should cheer this outcome, but not before first forcing the pivot." Treasurys sold off in the lead-up to last week's election. The 10-year Treasury note yield was last at 4.431%, up more than 80 basis points since mid-September, when the benchmark yield traded at 3.62%. US10Y YTD mountain 10-year Treasury yield in 2024 It's not clear how receptive Trump will be to cues from the bond market.