Treasury Yields Spike As Hawkish Powell Sparks Bond Market Re-Set

Treasury yields rose higher Monday, pushing benchmark 2-year bond yields to levels last seen before the global financial crisis, as investors adjusted interest rate expectations in the wake of the aggressive Jackson Hole speech from Fed Chair Jerome Powell.

Powell’s pledge to use “vigorously” the Fed’s tools to curb inflation, in addition to warning that it will cause “some pain for households and businesses” in the world’s largest economy, surprised many in the bond market on Friday as the The Fed’s preferred inflation measure continues to show consistent downward movements.

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