A short while ago the 30Y bond yield spiked to a high of almost 5.08% as Pres Trump continued his assault on Fed Chair Powell in answers to questions from reporters in Oval Office. Seems Trump continuous verbal/written threats to fire, announce a shadow Fed,
accuse Fed chief of fraud and incompetence are getting more serious attention by markets as traders know the turmoil that such actions could cause. The front end firmed up presumably as a hand chosen Fed chief would cut rates immediately. Unfortunately, that same policy could stoke inflation, something Fed is trying desperately to avoid. The 30Y has bounced off lows on short covering and dip buying and is back to ~5.05%. But the 2/30Y curve is much steeper +114 bps vs +106 bps late yesterday. These threats to Fed independence are just adding to uncertainty on so many other levels.
