[ad_1]
US Treasury yields rose on Friday morning after Federal Reserve Chairman Jerome Powell admitted in Senate testimony that inflation was “well above target.”
The benchmark 10-year Treasury bill yield rose 3 basis points to 1.329% at 5:30 a.m. ET. The yield on 30-year Treasuries climbed 3.9 basis points to 1.958%. Yields move in the opposite direction to prices.
Powell was toasted by senators on Thursday during his second congressional testimony of the week on monetary policy.
While Powell reiterated the view that higher inflation appeared to be transient, he also acknowledged that the price pressures were far above the central bank’s target.
Inflation and job growth are two determining factors in when the Fed will tighten its accommodative monetary policy.
“We said we would start reducing our asset purchases when we believe the economy has made further substantial measured progress from last December,” Powell said Thursday. “We are actively thinking about it now.”
Treasury Secretary Janet Yellen told CNBC’s “Closing Bell” Thursday that she believed there would be “several months of rapid inflation” before price pressures cooled.
“I’m not saying this is a one-month phenomenon. But I think in the medium term we will see inflation return to normal levels,” she said. “But, of course, we have to keep a close eye on this.”
In terms of data released Friday, June retail sales figures are expected to be released at 8:30 a.m. ET.
The University of Michigan is also expected to release its preliminary July data on consumer sentiment and inflation expectations at 10 a.m. ET.
No auction is scheduled for Friday.
– CNBC’s Thomas Franck and Jeff Cox contributed to this market report.
[ad_2]
Source link