Janet Yellen will be the next chair of the Federal Reserve, and the bond market will love it. At least, that's the case made by Tony Crescenzi, an executive vice president, market strategist and portfolio manager at Pimco.
Chairman Ben Bernanke is widely expected to step down when his term ends in January. Speculation was all but confirmed when President Barack Obama told Charlie Rose on June 17 that "Ben Bernanke's done an outstanding job" but "he's already stayed a lot longer than he wanted to or was supposed to."
So who will the next chair be?
"It can't be known," Crescenzi said on Thursday's "Futures Now," but "the odds are highly in favor of Janet Yellen to be the first woman Fed chair" on the strength of "all her experience at the Fed."
Since October 2010, Yellen has been vice chair of the Fed's Board of Governors. She had previously served as the president of the Federal Reserve Bank of San Francisco.
(Read more: Why Yellen should be next Fed chief: Former Fed official)
The case for Yellen may have gotten another boost from a letter going around in the Senate. Signed by a third of the Senate's 54 Democrats, it urges Obama to appoint her, The Wall Street Journal reported late Thursday.
Crescenzi believe that the bond market also would be a fan.
"The bond market would probably rather have Janet Yellen in place, with her vast experience at the Federal Reserve," he said. "She would probably keep in place the transparency effort of the Fed, and also its communications efforts. As well, it looks like she would likely continue Ben Bernanke's program."
Crescenzi added, "There are too many uncertainties regarding the other candidates," so choosing on of them could mean "extra yield that investors demand for bonds," and "it would mark equities down."