U.S. Treasury yields rose on Friday as investors awaited President Donald Trump’s announcement of his choice to be the next Federal Reserve chairman.
4:45 a.m. ET; 10 year treasury Yields rose more than 3 basis points to 4.265%, and the two-year Treasury yield rose less than 1 basis point to 3.557%. The yield on the 30-year U.S. Treasury rose 4 basis points to 4.9%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
President Trump announced Thursday night that he will announce his choice to replace Jerome Powell as central bank president on Friday morning.
“Tomorrow morning, I will announce the Fed chair,” President Trump said at the premiere of “Melania,” a movie about first lady Melania Trump. The process to find Mr. Powell’s replacement began in September with 11 candidates, which were eventually whittled down to four.
They are believed to be former Fed Director Kevin Warsh, National Economic Council Director Kevin Hassett, current Fed Director Christopher Waller, and Rick Rieder, BlackRock’s chief investment officer for fixed income. Prediction markets give Warsh an 80% chance.
Investors are also watching Washington after the Senate failed to advance a procedural vote on a federal funding package Thursday, putting the federal government at risk of another shutdown and could take effect Saturday.
The December Producer Price Index is also scheduled to be released at 8:30 a.m. ET.
— Jeff Cox contributed to this report
