Kevin Warsh Hearing May Drive Treasury Yield Moves Near 4.25%
Kevin Warsh’s Senate hearing on April 19 is poised to shift market bets on Fed policy, with US 10-year yields hovering just below 4.25% and two-year yields back under 3.75%. JPMorgan Asset Management has increased allocations to inflation-sensitive longer-dated Treasuries ahead of potential rate-cut signals.
1. Market Anticipates Rate-Cut Signals at Warsh Hearing
Kevin Warsh, nominated to lead the Federal Reserve, will undergo a Senate confirmation hearing on April 19 that investors regard as crucial for gauging future interest rate cuts. The market currently assigns nearly 50% odds to a Fed rate reduction by year-end, shaped by easing Middle East tensions and inflation trends.
2. Treasury Yields Retreat and JPMorgan Positions
US 10-year Treasury yields have settled just below 4.25%, while two-year yields dipped under the Fed funds ceiling of 3.75% after surging on war-related oil-price spikes. JPMorgan Asset Management has increased its exposure to longer-dated, inflation-sensitive Treasuries in preparation for potential dovish guidance.