U.S. Treasury yields fell as investors remained focused on remarks from Jerome Powell that signaled the possibility of more rate hikes to tackle inflation.
U.S. Treasury yields were mixed Monday as investors remained focused on remarks from Federal Reserve Chair Jerome Powell that signaled the possibility of more interest rate hikes to tackle inflation.
A recent surge took 10-year yields to their highest level since November 2007 last week, as investors grappled with a surprisingly resilient U.S. economy and the possibility that sticky inflation could force the central bank to keep interest rates higher for longer. "The break-evens are basically flat, so what the market is pricing is indeed that the central bank is committed to keeping those rates higher and crushing that inflation. So, they are credible, which is a good thing," Sels said.
Last Wednesday, economic data disappointed on both sides of the Atlantic. In the U.S., S&P Global's flash U.S. Composite Purchasing Managers' Index fell to a six-month low of 50.4 in August, down from a reading of 52 in July.
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