U.S. Treasury yields rose in choppy trading after Federal Reserve Chairman Kevin Warsh said that the U.S. central bank will “have work to do” if policymakers are not confident that underlying inflation is returning to its 2% target.
The remarks made at the Fed’s annual Jackson Hole symposium acknowledged financial conditions do not appear restrictive and marked the closest he has come to acknowledging interest rate hikes may be needed to ease price pressures.
Also Read: US Fed chairman Kevin Warsh says inflation is elevated and ‘concerning’ at Jackson Hole
The 2-year note yield, which typically moves in step with Fed interest rate expectations, rose 5.36 basis points to 4.286%, the highest since July 31.
The yield on benchmark U.S. 10-year notes rose 2.01 basis points to 4.692%.