37 days ago • Posted by William Ramstein
Powell to keep rates low, bond yields continue rise.
Federal bank chairman Powell suggested the fed will keep rates low which sent bonds yields rising and saw the 10-year up by 8pt. Such a move shouldn’t be unusual - very loose policy should be associated with high bond yields, due to high inflation expectations. But the point of note yesterday was that it was real yields, not inflation expectations, rising. That could be because markets think the Fed will get behind the curve and eventually have to tighten even more than if it did so gradually. Source: macromarketsdaily.com