US Treasury yields declined sharply on Monday after the Supreme Court ruled that President Donald Trump lacks the authority to remove Federal Reserve Governor Lisa Cook from her post.
The decision, delivered by a narrow majority, marks a decisive legal setback for the White House and reinforces the institutional independence of the central bank.
The 10-year Treasury yield fell in response to the ruling, as investors priced in a reduced risk of political interference in monetary policy.
The move reflects a broader flight to safety, with traders reassured that the Fed’s decision-making process remains insulated from executive pressure.
Short-end yields also softened, signaling a slight easing in near-term rate expectations.
The case had centered on the administration’s attempt to dismiss Cook, a vote that has often been pivotal in close Federal Open Market Committee decisions.