US Treasuries declined for a third consecutive session as investors await Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium later this week for clues on the central bank’s next move on interest rates. The benchmark 10-year yield climbed two basis points to 4.34%.
- The 10-year yield extended gains that began after last week’s hotter-than-expected wholesale inflation report, the largest jump in three years.
- Other maturities also saw yields rise by similar amounts, mirroring moves in UK gilts.
- Powell is scheduled to speak Friday at Jackson Hole, with markets looking for dovish signals to confirm expectations of a September rate cut.
- Interest-rate swaps indicate an 80% probability of a quarter-point cut next month, with some traders betting on a larger 50-basis-point reduction.
- Markets remain cautious after Powell’s 2022 Jackson Hole speech, when he warned of economic pain ahead while emphasizing inflation control.
- Upcoming August jobs data, due Sept. 5, is expected to further shape expectations for Fed policy.
Relevant Companies
- TLT – iShares 20+ Year Treasury Bond ETF, directly impacted by moves in Treasury yields.
- IEF – iShares 7-10 Year Treasury Bond ETF, sensitive to rate expectations and yield curve shifts.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
