NEW YORK, Aug 28 (Reuters) - The Federal Reserve will "have work to do" if policymakers are not confident that underlying inflation is returning to its 2% target, Chair Kevin Warsh said on Friday in remarks that marked the closest he has come to acknowledging interest rate hikes may be needed to ease price pressures.
Short-term Treasuries sold off in anticipation of rate increases as soon as next month, with the 2-year Treasury yield rising 11 basis points to 4.34%, its highest in a month. The 10-year Treasury yield was up 5 basis points at 4.72% and the 30-year Treasury yield was up 1.6 basis points at 5.206%.
U.S. stocks were mixed early in the afternoon on Friday, with the Nasdaq off 0.3%, while the U.S. dollar index rose 0.6% to 99.66, again reflecting expectations that rates will rise. The rates market was showing a 60% chance of a rate increase next month, up from 35% before the speech, according to CME data.
COMMENTS:
NATHAN SHETTY, CHIEF INVESTMENT OFFICER, SEI INVESTMENTS, OAKS, PENNSYLVANIA:
#yield #points #Friday #rates
Short-term Treasuries sold off in anticipation of rate increases as soon as next month, with the 2-year Treasury yield rising 11 basis points to 4.34%, its highest in a month. The 10-year Treasury yield was up 5 basis points at 4.72% and the 30-year Treasury yield was up 1.6 basis points at 5.206%.
U.S. stocks were mixed early in the afternoon on Friday, with the Nasdaq off 0.3%, while the U.S. dollar index rose 0.6% to 99.66, again reflecting expectations that rates will rise. The rates market was showing a 60% chance of a rate increase next month, up from 35% before the speech, according to CME data.
COMMENTS:
NATHAN SHETTY, CHIEF INVESTMENT OFFICER, SEI INVESTMENTS, OAKS, PENNSYLVANIA:
#yield #points #Friday #rates
2 months ago
