U.S. Treasury yields declined on Tuesday morning after investors continued to process the news Jerome Powell had been nominated as Federal Reserve chair.

The benchmark yield 10-year Treasury noteThe yield on the bond fell less than one basis point, to 1.6236%. The yield for the 30-year Treasury bondWe gave up less than one basis point at 1.9699%. Yields are inversely related to price movements and one basis point equals 0.01%.

President Joe Biden said Monday that he has nominated Powell for a second four-year term as Fed chair.

Biden appointed Fed Governor Lael Mindard as Vice Chair. He was another favourite for the top job. Brainard was predicted to adopt a more conservative approach to monetary policies, and Powell’s renewed nomination has strengthened expectations that Powell will not change his current policy of cutting back on emergency stimulus.

Guy Stear was the Global Head of Fixed Income at Societe Generale.Squawk Box EuropePowell’s renomination “definitely was a continuity decision.”

Stear was positive that the Fed would take a longer time to raise interest rates because of concerns over Covid-19. This could have an impact on economic sentiment.

Stear thought it likely that the 10-year Treasury rate would break the 1.7% barrier before the year’s end.

Markit’s flash purchasing manager’s index for November is expected to be released at 9:45 AM on Tuesday. ET.

On Tuesday, auctions will be held for $39 billion in 35-day bills and $59 billion in 7-year notes. $24 billion is 2-year floating rate notes.