US T-Yields climb, Start Holiday-Shortened Trade

With Biden deciding to reappoint Jerome Powell at Federal Reserve for second term, yields for U.S. government debt were headed higher on Monday to kick off a holiday-shortened week, with the Treasury market closed on Thursday in observance of Thanksgiving Day and due to be cut short Friday.

The rise in yields came as stocks rallied on the White House’s announcement that President Joe Biden would nominate Federal Reserve Chairman Jerome Powell to a second four-year term.

Some traders, investors and other market participants attribute the surge in yields to comments made by Christopher J. Waller, Fed’s No. 2 official on Friday regarding taper at a faster pace.