Breaking: Powell downplays bond market turmoil, 10-year yield jumps above 1.5%

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When asked about the US Treasury bond market turmoil, FOMC Chairman Jerome Powell refrained from commenting specifically on bond yields and said that they would be concerned “by a persistent tightening of financial conditions broadly.”

Following these comments, the benchmark 10-year US Treasury bond yield shot higher and was last seen gaining 2.6% on the day at 1.527%. Consequently, the US Dollar Index gained traction and is currently rising 0.37% at 91.28.

Assessing Powell’s remarks, “the world’s most powerful central banker has spelled out his last words before the blackout period – and markets have undoubtedly noticed,” said FXStreet analyst Yohay Elam. “Powell refrained from using his power and only said that recent bond jitters “caught my attention”– paraphrasing his colleague Lael Brainard.”

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