, Columnist
Bond Traders Know Where Fed's Hawkish Turn Will Lead
Central bankers like Jerome Powell are no longer doves. Traders have seen this movie before.
The new look.
Photographer: Rischgitz/Hulton ArchiveThis article is for subscribers only.
Dramatically, Federal Reserve Chair Jerome Powell is a dove no more. But his hawkish pivot has the bond market shrugging its shoulders and carrying on, regardless. There was a modest shift higher in the front end with expectations for the first interest rate hike now coming a bit earlier — but the rest of the yield curve simply ain't buying it. The U.S. 30-year yield fell to the lowest level since January.