US 10-year Treasury yields dipped today amid reports that Donald Trump was likely to nominate Jerome Powell as the next Federal Reserve (Fed) chair.
The US 10-year yield was at 2.376% versus yesterday´s close of 2.405% (bond yields move inversely to prices).
Speculation that Trump was inclined to name a more hawkish figure as the next Fed chair has been putting upward pressure on US Treasury yields of late.
Trump is expected to reveal his nomination for the Fed chair on Thursday.
Jerome Powell is viewed as a relatively centrist figure, so less likely to push for big rate increases than some of Trump´s other possible choices.
Having already raised US interest rates twice this year, the Fed is still on course to hike rates on one further occasion before year-end, in line with its previous guidance. This would take US rates to 1.5%.
With US economic data remaining strong, the Fed appears unlikely to sway from its current forecast. The next rate rise could come at its December meeting.
Current Fed chair Janet Yellen will stand down early next year.