U.S. Treasury Auction Size Maintained Amid Fed Chair Nominee Expectations

In Asian trading hours, U.S. Treasury yields experienced a slight decline, influenced by expectations surrounding the nomination of Kevin Warsh as the Federal Reserve Chair. According to Jin10, analysts from Commerzbank, including Erik Liem, have noted that U.S. President Donald Trump's nomination of Warsh has reinforced market expectations that the Federal Reserve may not rely heavily on balance sheet measures in the future. Meanwhile, the U.S. Treasury's decision to maintain the auction size aligns with market expectations, despite official statements indicating ongoing evaluations of potentially increasing the auction sizes for bills, bonds, and floating rate notes.