The Bessent bond-market scorecard doesn’t look as strong as it once did

The Bessent bond-market scorecard, a widely followed gauge of bond market performance, has lost its luster since President Donald Trump's inauguration. U.S Treasury securities have underperformed compared to other major government bond indices, with the exception of Japan. This is a notable shift, as U.S Treasuries were once considered a benchmark for global bond markets.

This underperformance is significant for fund managers, as it suggests that U.S Treasuries may not be the safe-haven asset they once were. In a rising interest rate environment, investors are seeking better returns from other government bond markets. The change in the Bessent scorecard also implies that investors are reevaluating their asset allocations, potentially leading to a shift away from U.S Treasuries and into other fixed-income assets.

Looking ahead, fund managers should watch how the U.S Treasury market responds to upcoming economic data releases and Federal Reserve policy decisions. The Fed's stance on interest rates and inflation will likely influence the performance of U.S Treasuries and other government bond markets. Additionally, investors will be monitoring the yield curve for signs of stress or opportunities, as changes in the curve can have significant implications for bond market performance and overall economic health.

Originally reported by marketwatch.com. FundNews adds analysis for finance & markets readers.