10-Year Bond Yield Surges Past 5.3% After Waller Backs Further Fed Rate Hikes

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The yield on the 10-year U.S. Treasury note climbed above 5.3% today after Christopher Waller, a member of the Federal Reserve Board of Governors and a permanent voting member of the Federal Open Market Committee, voiced support for the Fed raising interest rates. As of 10:15 p.m. Thailand time, the 10-year Treasury yield stood at 5.305%, while the 30-year Treasury yield was at 5.663%. Speaking at the Istanbul Economic Forum, Waller said the Fed may need to raise rates further to bring inflation back to its 2% target, provided the economic data due out in the coming weeks continue to come in as expected. He noted that the increases need not come in consecutive meetings, but should be carried out within an appropriate timeframe. He also said he supports a rate hike in September, not only because of the August consumer price index data but also because months of evidence show hiring remains strong and inflation has stayed persistently high. He expressed concern that the recent pickup in inflation is pushing consumers, investors, and businesses that set prices for goods and services to raise their expectations for future inflation.

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Waller voiced support for further Fed rate hikes, including a September hike, pushing the policy rate expectation higher.