Following the hawkish remarks from Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, the 10-year US Treasury Bond Yield surged to its highest level since July of 2011 at 3.184%.
Speaking at The Atlantic Festival, Powell said that rates were still accommodative and far from neutral, and added they could continue to raise rates even after they reach the neutral rate.
Commenting on yields’ performance, “The U.S. 10-year traded as high as 3.18 percent on Wednesday, the highest in seven years, spurred by the surging U.S. economy and a determined Fed. Treasury rates are entering the range of consequence, where higher interest costs will begin to have an economic impact,” FXStreet Senior Analyst Joseph Trevisani said.
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