The yield on the 10-year US Treasury note rose nearly 5 basis points to above 4.27% on Friday, continuing this week’s upward trend amid speculation that President Donald Trump will nominate former Fed Governor Kevin Warsh as the next Federal Reserve chair. Trump said Thursday night that he would announce his pick on Friday morning, with markets favoring Warsh, who is viewed as a more hawkish contender. Other potential candidates, including Fed Governor Christopher Waller and BlackRock CIO Rick Reider, are seen as more dovish options. Earlier this week, the Fed held its policy rate steady as expected, though two FOMC members dissented in favor of a 25-bps rate cut. Meanwhile, the White House and Senate Democrats reached a provisional agreement to avert a US government shutdown.
