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Treasury Yields Climb After Powell Signals Higher Rates

Treasury yields are up initially after Federal Reserve Chair Jerome Powell said in prepared remarks that the central bank!

That literally means the interest rates will be higher than previously expected, and that the pace of rate increases, if necessary.

Tweet on Treasury Yild climb after Fed’s announcement 

Chart by Tullet Preton

The bond market reaction so far has been clear but not overly dramatic, suggesting the comments didn’t catch investors completely off guard after recent data showed inflation not easing as quickly as hoped.

In recent trading, the yield on the benchmark 10-year U.S. Treasury note was 3.981%, according to Tradeweb, up from 3.954% before Mr. Powell’s congressional testimony was released.

The yield on the two-year note, which is more sensitive to changes to the near-term interest rate outlook, registered a bigger jump, climbing to 4.949% from 4.882%.