Warsh’s Fed Confirmation Hearing Is Next Driver for US Debt

Bond traders who’ve grown more optimistic about an end to the Iran conflict see their next catalyst coming from Capitol Hill, where Kevin Warsh will face questions as President Donald Trump’s pick to lead the Federal Reserve.

A brief reopening of the Strait of Hormuz and the promise of renewed US-Iran peace talks sparked a rally in Treasuries to end last week, with traders boosting their expectations for a Fed interest-rate cut by year-end. The US two-year yield, which had been trading above the central bank’s current ceiling of 3.75% amid the war-related surge in oil, once again dipped backed below it as crude receded. It remained below that level, at around 3.72%, on Monday.