A Warsh-Led Fed Stands to Reignite the Treasuries Steepener Bet

Wall Street strategists say that a Kevin Warsh-led Federal Reserve may jolt the $31 trillion Treasuries market out of its narrow trading ranges, urging investors to position for shorter-dated yields to eventually move lower.

US yields rose two to three basis points on Monday, staying on pace for their tightest monthly range since late 2020. With talks between the US and Iran to end the war at an impasse and the Fed widely expected to keep interest rates steady this week, the 10-year yield was up three basis points to 4.33%.