FX.co ★ US 10-Year Yield Rises on Warsh Bets

The yield on the 10-year US Treasury note climbed by nearly 5 basis points, exceeding 4.27% on Friday. This rise continues the week’s upward trend, fueled by speculation over President Donald Trump's potential nomination of former Federal Reserve Governor Kevin Warsh as the next Fed chair. On Thursday night, Trump indicated that he would reveal his decision on Friday morning. Markets are leaning towards Warsh, who is perceived as a more hawkish candidate. In contrast, other contenders like Fed Governor Christopher Waller and BlackRock's Chief Investment Officer Rick Reider are considered more dovish options. Earlier in the week, the Federal Reserve held its policy rate steady as anticipated, although two members of the Federal Open Market Committee (FOMC) dissented, advocating for a 25-basis point rate cut. Concurrently, the White House and Senate Democrats reached a preliminary agreement to prevent a government shutdown in the United States.