Economics
Yellen’s Talk of Hot U.S. Economy Extends October Long-Bond Rout
- Treasury 30-year yield jumps by most since ’15 in past 2 weeks
- Fed chair pondered merits of ‘high-pressure economy’ in speech
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Federal Reserve Chair Janet Yellen may have just shattered the complacency among investors in the longest-dated U.S. sovereign debt.
Treasury 30-year yields surged Friday, extending the bonds’ biggest two-week decline since May 2015, as Yellen hinted at letting U.S. growth run hot in a speech to a Boston Fed conference. She pondered whether a “high-pressure economy” could boost areas like labor-force participation. A gauge of the yield curve steepened by the most since March as longer-dated debt underperformed.