Treasury Curve Steepens as Fed Says No Link Between Taper, Hikes
- Longer rates rose relative to short end; rate rise bets steady
- Powell tamps down fears that rate increases will come soon
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Treasury yields rose and the curve steepened after Federal Reserve Chairman Jerome Powell stressed that interest-rate hikes are not imminent as he announced plans to start reducing asset purchases.
Longer-end rates rose relative to those on shorter maturities, while measures of bond-market inflation expectations ticked up, suggesting some concern about how well the central bank will keep a rein on consumer-price expectations.