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Treasury Inflation Bets in Full Swing as Fed Holds Off Pushback

  • Powell says central bank won’t act preemptively with hikes
  • Yield curve steepens rapidly, with 30-year yields rise to 2.5%
Bloomberg business news
Guggenheim's Minerd Expects 'Severe Snapback' in Yields
Updated on

Bond traders ramped up bets on faster growth and inflation after Federal Reserve officials reiterated projections that they’ll hold rates near zero through 2023.

The signal of continued ultra-loose policy drove the Treasuries yield curve sharply steeper, with 30-year yields breaking above 2.5% for the first time since 2019. The premium over five-year debt was within touching distance of the highest level in nearly seven years.