Treasury Yields Rise
(Dow Jones)–A risk-on mood seems to get traction as bonds sell off and Treasury yields recover from recent declines. The 10-year is at 3.412% and the two-year at 3.912%, both still lower for the week. Data this week supported bets on a Fed pause, while hawkish fedspeak tried to counter the tide. Fed Governor Bowman says more tightening “will likely be appropriate” if inflation and labor markets refuse to ease. Next week will see several Fed officials delivering public speeches, including Chair Powell on Friday. “We fully expect the Fed to remain tough in speech as the margin for error is limited,” AmeriVet’s Gregory Faranello says in a note.
By: Paulo Trevisani (firstname.lastname@example.org; @ptrevisani)