As investors back Trump's Treasury secretary nominee, inflation data awaits and treasury yields decline.

On Monday, U.S. Treasury yields were lower due to investors considering President-elect Donald Trump's Treasury secretary nominee and anticipating a crucial inflation report later in the week.

The yield was down over 2 basis points at 4.348%, while the was down 6 basis points at 4.35%.

Yields and prices move in opposite directions, with one basis point equal to 0.01%.

The appointment of Scott Bessent, a hedge fund executive, as Treasury secretary has reassured investors about the future of the U.S. economy.

Bessent, the founder of Key Square Group, is predicted to support the incoming president's economic objectives, such as gradual tariffs and pro-business policies. Nevertheless, as a seasoned Wall Street veteran and a fiscally conservative investor, it is believed that Bessent will prioritize economic stability in the United States and financial markets.

The appointment of Scott Bessent as U.S. Treasury Secretary has led to lower bond yields, higher stock prices, and a weaker dollar this morning, according to Kit Juckes, chief FX strategist at Societe Generale, in a note on Monday.

"The U.S. budget deficit and inflationary impact of tariffs caused markets to worry about his nomination. However, his nomination has changed the market mood, even if he can't achieve 3% GDP growth and a 3% budget deficit."

"Bessent advised CNBC earlier this month that tariffs should be introduced gradually, stating that Trump would not want to cause inflation."

This week, some important data points are in focus, leading up to a shortened trading week. Markets will be closed on Thanksgiving and end early on Friday.

The Federal Reserve's policy meeting minutes and the S&P CoreLogic Case-Shiller national home price index for September are set to be released on Tuesday.

On Wednesday, several economic updates will be released, with the October personal spending and income report being particularly important as it includes the personal consumption and expenditure (PCE) price index, which is the U.S. Federal Reserve's preferred inflation gauge.

According to Dow Jones estimates on Friday, economists anticipate a 2.8% year-over-year increase in core inflation, which excludes volatile food and energy prices, and a 2.3% year-over-year increase in headline inflation.

Before the Fed's December meeting, investors will be searching for clues about the central bank's next policy decision.