BlueBay: Trump did not consider appointing an external independent candidate as Chairman of the Federal Reserve could help stabilize long-term bond yields.

Mark Dowding, Chief Information Officer of BlueBay, stated in a report that President Trump did not consider appointing an external maverick as the chairman of the Federal Reserve, which could help stabilize long-term bond yields and perhaps relieve American bond investors. He said that BlueBay has always believed that the next round of steepening in the US bond yield curve will be led by a decline in cash rates rather than selling off 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, with a smaller likelihood of a further 50 basis point cut. According to Tradeweb data, the yield on 10-year US Treasury bonds rose by 3.2 basis points to 4.042%.