U.S. interest rate futures saw the 2-Year T-Note reach a two and a half week high, settling at 104'070. The move was driven by the nomination of Kevin Warsh as the next Federal Reserve chair, which sparked a steepening of the yield curve. While the 2-Year yield dropped to 3.525%, the back end of the curve faced selling pressure following a producer price index report that came in higher than anticipated. The 2-Year 10-Year yield spread widened to 71.5 bps, pushing toward the top of its recent range. Market participants are evaluating how potential regime changes at the central bank could shift long-term policy initiatives as the yield curve continues to adjust to fresh inflation data.