The 10-year Treasury yield is up by 6.7 bps to a four-month high of 4.227% as investors digest easing geopolitical tensions and President Trump’s nominee to replace Fed Chair Jerome Powell.
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“I greatly respect the fact that all scheduled hangings, which were to take place yesterday (Over 800 of them), have been cancelled by the leadership of Iran,” Trump said in a Truth Social post on Friday. Treasuries are viewed as a safe-haven asset, with easing geopolitical risks reducing demand for notes and bonds and pushing yields higher. The yield on Treasuries moves in the opposite direction of their prices.
Why is the 10-Year Treasury Yield Up Today?
Trump also noted that he would like White House National Economic Council Director Kevin Hassett to remain in his current position. Following the comment, the odds of Trump nominating Hassett as Fed Chair dived to 17% from 31%, while former Fed Governor Kevin Warsh’s odds rose to 61% from 34%.
Warsh is viewed by some economists as less likely to cut rates than Hassett. In other words, the 10-year Treasury yield rose as investors priced in a more hawkish Fed outlook under a possible Warsh nomination.
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