(Bloomberg) — Long-dated US Treasuries were lagging the market and retained modest losses as President Donald Trump intensified efforts to oust Federal Reserve Governor Lisa Cook, deepening concerns his attacks on the central bank’s independence and lobbying for lower interest rates will fan inflation.
The yield on 30-year bonds rose as much as five basis points to 4.94%, before trimming advance. In contrast, the two-year yield fell five basis points to a session low of 3.67% after a well received $69 billion auction at 1pm in New York.
While the moves were relatively small, investors and strategists were speculating in their morning trading notes that price pressures may heat up if Trump succeeds in replacing Cook with a policymaker more inclined to lower borrowing costs. The President has repeatedly complained that Fed Chair Jerome Powell and his colleagues have been too slow to cut rates.
“The President is going to remake…
