Institution: The risk event of changing the chairman of the Federal Reserve has not yet been fully priced into the US bond market.

Natixis analyst John Briggs said that the increasing pressure from the White House on Powell has not yet been fully priced in by the US bond market. Investors are pricing in rate cuts for this year, which is pushing down short-term yields. The faster rise in long-term yields is usually attributed to concerns about the US fiscal deficit. "Unless we can better understand Trump's preference for the next Fed chairman, I don't think the market will be affected in terms of pricing," Briggs said. Powell has indicated that he will stay on until his term ends in May. Trump is expected to pick a more dovish successor.