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Summary of Treasury Secretary Scott Bessent’s remarks at a recently concluded press conference at the White House. He covers much of the same ground as interviews with Fox and CNBC yesterday. 

• Asked if the ultimate goal of tariffs is long-term revenue or favourable trade deals, Bessent says “it’s a combination of both.” Adds: “We’re going to take in long-term tariff revenue,” and stresses “18 important trading relationships” with whom the administration will continue negotiations in the coming weeks.
• Bessent says he thinks “there is a very good chance” of tariff revenue providing incoming tax relief in the upcoming Republican reconciliation ‘big beautiful bill’.
• Bessent specifically notes that tariff revenue could be used to provide tariff relief on Trump’s campaign trail tax pledges: No tax on tips, social security payments, overtime wages, and deductibility for US-made autos.
• Bessent refuses to be drawn on whether Chinese and US officials are engaged in active discussions on trade: “We’re not going to talk about who’s talking to whom…” He adds that “the onus is on them to take off these tariffs”.
• Asked when the first trade deals could be announced, Bessent says a problem for markets is that Trump creates “strategic uncertainty” in negotiations, but he notes that the “aperture of uncertainty is narrowing” indicating deals could be announced soon.
• He reiterates that Japan, India, and South Korea have been “most forthcoming” on striking a deal. He says he sees the “contours of a deal” with South Korea and confirms “substantial talks” with Japan.
• Bessent says he doesn’t expect supply chain shocks as he believes retailers are likely to have managed their inventory ahead of the new tariff rate. 

• Treasury futures gapped higher, extended top end of range after higher than expected March JOLTS quits rate (Jul'24 lvl), declining Confidence levels.
• Jun'25 10Y currently +5.5 at 112-02 vs. 112-06 high (10Y yld tapped 4.1736% low), through round number resistance, next level at 112-12 (61.8% retracement of the Apr 7 - 11 bear leg).
• Cross asset: BBG US$ index firmer off session low at 1221.79 (+1.97); stocks inexplicably bouncing: S&P eminis +13 at 5566.00.

• The 4.46% level in the 10yr Gilt is now tested as US JOLTS and Consumer Confidence come below consensus.
• While this Yield level is still holding, printed a 4.459% low, further push lower in Yield terms will have Investors staring at the 4.363% Yield, this was the April and 2025 low.
• Today, this would equate to 94.30.