US Treasury yields rose on Monday morning, as investors remained focused on who would appoint a Federal Reserve chair.
return on standard 10-year treasury bonds It rose 2 basis points to 1.5583% at 3:45 AM ET. return on 30 year treasury bonds It advanced by less than a basis point to 1.9107%. Returns move inversely with prices and one basis point is 0.01%.
President Joe Biden is set to announce his selection to head the Federal Reserve in the coming days, with incumbent President Jerome Powell and Governor Lyle Brainard the most likely candidates. If Brainard is nominated, many expect More pessimistic monetary policy, which means the Federal Reserve may take longer to withdraw emergency stimulus measures.
However, David Pierce, managing director of GBS Capital Markets, told CNBC:Squawk Box EuropeOn Monday, he thought most people expected Powell and Brainard’s approach to monetary policy to be ‘pretty much the same’.
In fact, Pierce suggested that the focus of their approaches should be to change the way banks and financial institutions are regulated, as this could lead to “a real big stumble in the lending market.”
On Monday, Existing Home Sales data for October is due to be released at 10 AM ET.
Auctions are scheduled for $57 billion in 13-week notes, $51 billion in 26-week notes, $58 billion in two-year notes and $59 billion in 5-year notes.
– CNBC’s Yun Li contributed to this market report.