NEW YORK (Reuters) – Investors are raising expectations the Federal Reserve will act to tame an upturn in yields by expanding its purchases of long-dated Treasury bonds, after the U.S. central bank said it would allow inflation to run higher.
Yields on 30-year U.S. Treasury bonds US30YT=RR hit a two-month high on Friday. Rising yields are a potential problem for the Fed as they raise the cost of borrowing for companies and individuals and threaten economic growth.
Some investors said the central bank may need to address the possibility of buying longer-dated debt at its mid-September policy meeting, if not sooner. Investors had previously expected the Fed to introduce the policy by the end of the year. Read more…..
Chart of the Day
Icarus TV
Chetan Ahya, Morgan Stanley global head of economics, joins ‘Closing Bell’ to discuss Federal Reserve chairman Jerome Powell’s dovish speech.
