‘Roller-Coaster Ride’ in Bonds Puts Onus on Powell to Bring Calm
- Long-end U.S. rates unwind part of their move from last week
- Investors look to Powell for clarity on what should be priced
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Treasury traders are looking for Federal Reserve Chair Jerome Powell to provide some calm after a volatile few sessions that have sent yields on what one bank described as a “roller-coaster ride.”
Ten-year yields have swung in a 25-basis-point range in the past three sessions, having initially been thrown higher by the Fed’s comments that brought forward bets on interest-rate hikes. Monday’s trading encapsulated that volatility, with yields initially dropping to 1.35% before climbing to 1.50% by the session close -- the largest gap since February. The 10-year rate has eased back to 1.485% in U.S. trading Tuesday.