The U.S. Treasury yield curve steepened on Tuesday with short-term yields falling and long-term yields rising after U.S. President Donald Trump moved to fire Federal Reserve Governor Lisa Cook from the central bank’s board.
The 2-year yield was more than 4 basis points lower at 3.685%, while the 30-year yield added more than 2 basis points to 4.911%. The 10-year Treasury yield was less than 2 basis points lower at 4.26%. One basis point is equal to 0.01% and yields and prices move in opposite directions.
Investors bet on lower rates in the near future, but higher rates over the long-term after Trump chipped away at the Fed’s independence by announcing the removal of Cook from her position via a post on his platform, Truth Social.
The president cited allegations by Federal Housing Finance Agency Director Bill Pulte that Cook made false statements on one or more of her mortgage agreements.
Cook will sue her removal by Trump, with her…
