Treasury yields rise after Biden picks Powell over Brainard for top Fed post
U.S. Treasury yields rose Monday after President Joe Biden renominated Jerome Powell for a second term as Federal Reserve chair.
The yield on the benchmark 10-year Treasury note climbed by 9.3 basis points to 1.629% in afternoon trading The yield on the 30-year Treasury bond advanced by 6.4 basis points to 1.971%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Dollar jumps on Powell renomination, euro hurt by COVID lockdowns
The dollar set a 16-month high against the euro on Monday after Federal Reserve Chair Jerome Powell was nominated for a second four-year term by President Joe Biden, while the single currency was also hurt by an increase in COVID-19 cases in the region.
Lael Brainard, the Federal Reserve board member who was the other top candidate for the job, will be vice chair, the White House said.
The dollar index against a basket of currencies rose 0.27% on the day to 96.29, the highest since July 2020. The euro dipped 0.46% to $1.1248, also the weakest since July 2020.
The single currency was dragged lower earlier on Monday as concerns grew over new COVID-19 restrictions in Europe, with Austria entering another full lockdown and Germany considering following suit.
The Fed will release minutes from its Nov. 2-3 meeting on Wednesday, which will be evaluated for any new indications that Fed officials are becoming more concerned about stubbornly high inflation.
Reference: CNBC
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