[MARKET ANALYSIS] T-note futures trickled lower amid potential Warsh Fed Chair nomination

The T-note futures have dipped as anticipation builds around the potential nomination of Warsh for Fed Chair, perceived as more hawkish.

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[MARKET ANALYSIS] Dollar gains amid Warsh Fed chair nomination speculation

[MARKET ANALYSIS] T-note futures trickled lower amid potential Warsh Fed Chair nomination

[MARKET UPDATE] Metal prices extend on losses with spot gold now down 4.4% and spot silver down 6.0%, with the Trump admin said to be preparing for Warsh nomination

Trump administration is said to be preparing a Warsh Fed nomination, according to Bloomberg

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USTs: -7 ticks

  • Retreated overnight as markets await the Fed Chair pick, which President Trump said will be announced on Friday morning and with the White House said to be preparing for a Warsh nomination, who is viewed as more hawkish than Hassett.

Bunds: -23 ticks

  • Continued the gradual pullback from this week's peak but with further price moves contained ahead of a slew of releases from Germany, including Flash GDP, Import Prices, Unemployment and HICP data.

JGBs: +15 ticks

  • Edged higher, albeit with price action somewhat choppy amid a slew of data, including softer-than-expected Tokyo CPI data and with participants awaiting the latest 2yr JGB auction.
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This could lead to market recalibrations around interest rate expectations, affecting fixed income and potentially supporting a stronger USD if confirmed, given the perceived tightening bias it implies.

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