U.S. Treasury yields rose on Monday morning, as investors remained focused on who will be named chair of the Federal Reserve.
The yield on the benchmark 10-year Treasury note climbed by 2 basis points to 1.5583% at 3:45 a.m. ET. The yield on the 30-year Treasury bond advanced by less than a basis point to 1.9107%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
President Joe Biden is due to announce his pick for Federal Reserve chair in the coming days, with current chairman Jerome Powell and Governor Lael Brainard considered the most likely candidates. If Brainard is nominated, many expect more dovish monetary policy, meaning it may take the Fed longer to pull back its emergency stimulus measures.
However, David Pierce, managing director at GPS Capital Markets, told CNBC’s “Squawk Box Europe” on Monday that he thought most people expected Powell and Brainard’s approach to monetary policy to be “pretty similar.”
Pierce actually suggested that the focus should be on their approaches to changing the way that banks and financial institutions are regulated, as this could put a “real huge crimp in the lending market.”
On Monday, existing home sales data for October is set to be released at 10 a.m. ET.
Auctions are scheduled to be held for $57 billion of 13-week bills, $51 billion of 26-week bills, $58 billion of 2-year notes and $59 billion of 5-year notes.
— CNBC’s Yun Li contributed to this market report.
