U.S. Treasury Yields Extend Climb After Powell's Comments
By Sam Goldfarb and Sebastian Pellejero
U.S. government-bond prices fell Thursday after Federal Reserve
Chairman Jerome Powell said the central bank's current policy
stance is appropriate, disappointing some investors who had been
hoping that he might signal greater concern with the recent
increase in Treasury yields.
The yield on the 10-year Treasury note, which rises when bond
prices fall, recently traded at 1.538%, according to Tradeweb, up
from 1.479% before the start of Mr. Powell's interview at The Wall
Street Journal Jobs Summit and 1.469% Wednesday.
Mr. Powell said the recent increase in Treasury yields had
caught his attention and suggested the Fed might intervene if
overall financial conditions tightened much further. But he stopped
well short of signaling that the Fed was anywhere close to
increasing the amount of long-term Treasurys that it buys each
month in an effort to contain yields, as some investors had thought
"The market had clearly set itself up for more guidance than the
Fed's prepared to give right now," said Jim Vogel, interest rate
strategist at FHN Financial.
Before Thursday, Treasury yields had logged one of their
sharpest increases in recent years, with the 10-year yield having
climbed from about 0.9% at the start of the year.
Investors and Fed officials alike say that rising yields
generally reflect a brightening outlook, thanks to the distribution
of coronavirus vaccines and large amounts of government
Higher yields, though, could also drag on the economy by
increasing borrowing costs for individuals and businesses, leading
some to think that the Fed might try to stop them from rising
Write to Sam Goldfarb at firstname.lastname@example.org and Sebastian
Pellejero at email@example.com
(END) Dow Jones Newswires
March 04, 2021 14:02 ET (19:02 GMT)
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