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Treasury futures surge as Summers withdraws from Fed race

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Futures for the U.S. Treasury 10-year note leaped over a full point, a sizable move for Asian hours, as investors took yields lower after Larry Summers withdrew his name from consideration for Federal Reserve Chairman.

Investors largely believed he was the frontrunner for the job and that the former Treasury Secretary would embark on a more hawkish course regarding the removal of Fed stimulus than the other candidates believed to be in contention.

(Read more: Get ready for a Summers rally after exit from Fed race)

Pimco's Bill Gross tweeted this shortly after the news:

The 10-year yield hit a two-year high above 3 percent last week after strong economic data and also as Summers moved firmly into the front runner spot for the Fed nomination.

(Read more: Summers withdraws his name for Fed chair )

"This is very bullish of bonds and stocks and very bearish of the dollar," said Dennis Gartman of The Gartman Letter. "Yellen is THE front runner."