TREASURIES-Bonds rally on Bessent pick for Treasury secretary

SINGAPORE, Nov 25 (Reuters) - Treasuries rallied in the Asian session on Monday as bond investors cheered the selection of Scott Bessent as U.S. Treasury secretary, reckoning on a steady hand on government finances.

A fund manager, Bessent is seen as a voice for markets in incoming U.S. President Donald Trump's administration and as a fiscal conservative likely to want to keep a leash on U.S. deficits.

Benchmark 10-year U.S. Treasury yields, up 80 basis points since September, fell more than 6 basis points in Asia trade to 4.347% and the rally extended along the curve.

Two-year yields fell 3.2 bps to 4.336% and 30-year yields fell 6.3 bps to 4.533%.

Yields fall when bond prices rise.

If sustained, the rally would be one of the biggest for the bond market in several weeks and may have wrong-footed momentum funds following months of rising yields.

Bessent has mentioned his preference to grow the United States out of its large debts, reduce deficits and increase energy production.

Cutting both taxes and spending would be priorities, he told the Wall Street Journal.

"He is perceived to be a deficit hawk," said Nick Ferres, chief investment officer at Vantage Point Asset Management in Singapore.

"My sense is that this (rally) is also a function of positioning after the rise in yields and dollar strength over the last six weeks."

Pricing for near-term interest rate cuts in the United States, which has pushed out over recent weeks on signs of a strong U.S. economy and bets on Trump policies stoking inflation, was little changed in Asia.

Markets price about a 50% chance of a 25 basis point cut at the Fed's December meeting. (Reporting by Tom Westbrook. Editing by Kate Mayberry)