12.01.202612:32:47UTC+00Treasury Yields Rise as Fed Served With DOJ Subpoenas

The yield on the US 10-year Treasury note increased to 4.2% on Monday, reaching its highest point since late August. Concurrently, the 30-year yield experienced a rise of over 4 basis points, settling at 4.86%. This shift occurred amid renewed apprehensions regarding the Federal Reserve's autonomy, following Chair Powell's disclosure that the Department of Justice is engaged in a criminal investigation related to the $2.5 billion renovation of the Federal Reserve's headquarters. Powell emphasized that "the threat of criminal charges arises from the Federal Reserve setting interest rates based on our optimal assessment of what serves the public interest, as opposed to aligning with the President's preferences." Meanwhile, investors are anticipating several crucial economic data releases this week, which are expected to offer further insight into the Federal Reserve's policy direction. The Consumer Price Index (CPI) report, scheduled for release tomorrow, is anticipated to demonstrate an increase in inflationary pressures, thereby reinforcing the prevailing expectation that the Federal Reserve will maintain interest rates at their current level during this month’s meeting.