Long US Bonds Fall as Threat to Fed’s Cook Spurs Inflation Worry

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 its rise. In contrast, the two-year yield fell five basis points to a session low of 3.67% after a $69 billion auction of two-year notes drew strong demand.