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2025-09-12 22:47:58
BlueBay: Trump's decision not to appoint an outsider as Fed Chair could help stabilize long-term bond yields. BlueBay CIO Mark Dowding stated in a report that President Trump's decision not to appoint an outsider as Fed Chair could help stabilize long-term bond yields, which could come as a relief to Treasury investors. He stated that BlueBay has consistently believed that the next phase of the steepening Treasury yield curve will be led by a decline in cash rates rather than a sell-off in long-term bonds. "We expect this to occur as the Federal Open Market Committee (FOMC) restarts its rate-cutting cycle," he said. According to the London Stock Exchange, the Federal Reserve is expected to cut interest rates by 25 basis points next week, but a further 50 basis point cut is less likely. According to Tradeweb, the 10-year Treasury yield rose 3.2 basis points to 4.042%.
