U.S. Treasury Yields Rise Following Powell’s Remarks

Treasury bond yields in the United States continued to noticeably rise on Thursday, after the Chairman of the U.S. Federal Reserve, Jerome Powell, noted that the Fed is monitoring the debt market to observe any tightening conditions.

Powell said that some inflationary pressures are expected in the coming period, but ruled out a strong surge in the inflation rate that could lead to a rise in the Fed’s interest rates.

Following remarks by the Fed’s Chair, the benchmark 10-year Treasury bond yield leveled up by 7.3 basis points to 1.543%.

Return on the 30-year bond increased by 6.8 basis points to 2.318%, while the two-year bond yield rose by 0.6 basis point to 0.147%.

It is worth noting that Powell implied that the Fed is open to changing its policies, but vowed that monetary policymakers will be patient in observing any changes in market conditions.

Powell also reiterated a message that was carried out recently by a number of Fed board members that the rise in long-term Treasury bond yields is no reason for concern at the moment.