Yellen Discusses Increase in Yields, Sees a Return to Brookings
- Outgoing Treasury chief hopes bond vigilantes don’t return
- Yellen says interest-rate expectations have repriced
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Treasury Secretary Janet Yellen said that stronger than expected economic data spurred a repricing of expectations for interest rates that’s contributed to a selloff in US Treasuries.
“When we see strong data — surprises to the upside on indicators to the performance of the economy — that suggests that the path of interest rates going forward is going to be a little bit higher than people expected,” Yellen said in an interview with CNBC Wednesday. She was responding to a question on what’s behind the slide in Treasuries in recent weeks that’s pushed yields higher.