FX.co ★ US 10-Year Yield Holds Increase

The yield on the 10-year US Treasury note surpassed 4.25% on Friday, maintaining its upward trajectory for the week following President Trump's announcement of former Federal Reserve Governor Kevin Warsh as the imminent Fed Chairman. Warsh is considered one of the more hawkish contenders among those the President had suggested. He previously opposed expanding the central bank's balance sheet during the global financial crisis, when the Fed initiated its quantitative easing program. Despite now aligning with Trump in supporting lower interest rates, Warsh has been recognized as an inflation hawk. Earlier in the week, the Federal Reserve left interest rates unchanged, highlighting a balanced perspective on risks that could impact both aspects of their dual mandate. Meanwhile, rate futures indicated that the markets anticipate two rate cuts by the Federal Reserve.