Early signs suggest Treasury Secretary Scott Bessent's surprise moves are making an impact on the bond market. A week after his plan to bring down US borrowing costs, the 30-year yield remains 15 basis points from its highest level since 2007. Despite skepticism regarding long-term effectiveness, market speculation is rife that Bessent and former President Donald Trump will attempt to influence markets further ahead of midterm elections.

Traders are bracing for potential surprises as the administration seeks to keep markets humming.