Bond Traders Drive Up Yields After Lack of Powell Pushback
- Ten-year Treasury yield closing again on 1.6%, a one-year high
- With stocks tumbling, all eyes are on financial conditions
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Traders in the $21 trillion U.S. Treasury market are sending a clear signal that they intend to keep pushing yields higher until they upend financial conditions sufficiently to spark action from the Federal Reserve.
Ten-year yields climbed again on Friday, heading toward last week’s one-year high and undermining stocks, after Fed Chair Jerome Powell gave just a minor nod to the recent, abrupt surge in long-term borrowing costs. He stressed that officials are focused on the long road ahead before they achieve their policy goals.