BlueBay: Trump's lack of consideration for appointing an external maverick as Federal Reserve Chairman may help stabilize long-term bond yields

Mark Dowding, Chief Information Officer of BlueBay, stated in a report that President Trump is not considering appointing an external maverick as the Chairman of the Federal Reserve, which could help stabilize long-term bond yields and may provide some relief to U.S. Treasury investors. He mentioned that BlueBay has always believed that the next move towards a steeper U.S. 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 happen as the Federal Open Market Committee resumes its rate-cutting cycle," he said. According to data from the London Stock Exchange, the Federal Reserve is expected to cut rates by 25 basis points next week, but the likelihood of a further 50 basis point cut is low. According to Tradeweb data, the yield on the 10-year U.S. Treasury rose by 3.2 basis points to 4.042%