Treasury Curve Steepens on Powell’s Latest Bond-Buying Signal
- Long-end yields edge higher during Powell’s press conference
- Market may have been looking for pivot to longer maturities
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The Treasury yield curve steepened slightly Wednesday after the Federal Reserve Chair Jerome Powell, who signaled that it will keep rates near zero for at least three years, stopped short of tweaking bond purchases as some had expected.
Ten- and 30-year yields briefly spiked to session highs of 0.70% and 1.46%, respectively, during a press conference Powell held after the central bank’s latest policy decision. That caused the spread between 5- and 30-year yields, to widen slightly.