U.S. Treasury yields rose Friday as traders wait for Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium in Wyoming, where he may give clues to the central bank’s next moves.

What are Treasurys doing?

The 10-year Treasury note yield

TMUBMUSD10Y, +1.53%

  rose 2.5 basis points to 1.635%. The 2-year note rate

TMUBMUSD02Y, +0.22%

  was up 2 basis points to 1.628%, while the 30-year bond yield

TMUBMUSD30Y, +1.35%

  rose 2.3 basis points to 2.126%. Bond prices move in the opposite direction of yields.

What’s driving Treasurys?

The worsening economic outlook has led investors to demand further clarity on the Federal Reserve’s policy decisions in its coming meetings. Market participants are looking for Powell to offer additional details on how it intends to react to a backdrop of simmering trade policy tensions, an uncertain environment for corporations to invest in their own operations.

But several members of the Federal Open Market Committee including Kansas City Fed President Esther George expressed their opposition to further interest rate cuts on Thursday. They felt slowing but still healthy economic conditions did not necessitate easier monetary policy.

Still, traders on the fed fund futures market are pricing close to a 100% chance of a rate cut in September.

Investors are also uncertain how a U.S.-China trade deal might be struck. China state paper Global Times editor Hu Xijin said in a tweet Friday that Beijing would impose retaliatory tariffs on U.S. imports after Trump announced tariffs on an extra $300 billion imports from China earlier this month.

What did market participants’ say?

“The minutes from the July Fed meeting, published Wednesday, showed a clear split between Fed officials over the need for rate cuts. This split appears to have widened since the meeting following several speeches from officials late yesterday and overnight,” wrote Peter Schaffrik, global macro strategist at RBC Capital Markets.

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