US Treasury Secretary Yellen remarks hitting the news:
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Fed wants to create financial conditions consistent with bringing
down inflation, state of markets feeds into that - Unclear what role
increased Treasury supply had in recent rise in longer-term rates - Says bond markets
anticipating fed moves can be helpful complement to monetary policy
if participants are ‘thoughtful’ when reading data - Difficult to
disentangle expectations about fiscal, monetary path from other
factors affecting treasury term premium
Its not unusual for public sector employees to tell those in the private sector that they’re doing their jobs wrong. Such advice is best ignored. The job of bond traders, and all traders, is to make $$$, not keep the bureaucrats happy.
This article was written by Eamonn Sheridan at www.forexlive.com. Source