A slate of candidates dovish enough to cause the market to price out any rate increases next year—perhaps in a political calculation in which Powell gets renominated—could take as much as 20 basis points off the two-year note’s yield, Goldman’s Korapaty said.
“If we get three more as dovish as Neel Kashari,” president of the Minneapolis branch of the Fed, “that would have a pretty significant influence,” Schwab’s Jones said.
This article was provided by Bloomberg News.