Treasuries Gain as DOJ Drops Fed Probe, Opening Path for Warsh

Treasuries gained for the first time in a week after the Justice Department dropped its investigation into the Federal Reserve, potentially opening a path for President Donald Trump’s pick Kevin Warsh to become Fed chair and push for interest-rate cuts.

Yields moved lower across tenors on Friday after US Attorney for DC Jeanine Pirro said her office was closing its probe into construction project costs at the Fed. Two-year notes, which closely track changes in monetary policy expectations, fell about six basis points to 3.77%.