Castle Securities said Kevin Warsh's commitment to lowering inflation has
bolstered Fed credibility, supporting US long-term Treasury yields and
compressing the term premium. After last week's Fed meeting, trading in the $31
trillion US Treasury market showed long-end yields were more stable than the
more policy-sensitive two-year yield, and Nohshad Shah, head of fixed-income
sales, said a highly credible Fed should benefit long-end performance.