Fed's Hammack says bond yield surge not about lost inflation confidence
TLT•Cleveland Fed President Beth Hammack said rising bond yields reflect higher real rates rather than inflation fears, citing a solid economic outlook, strong tech investment and market adjustments to the monetary policy outlook.
1. What is driving yields
Hammack said real rates have risen more than inflation expectations and described inflation expectations as reasonably well anchored. She said rising yields reflect a solid economic outlook, competition for investor cash from strong tech sector investment, and market participants adjusting prices to the monetary policy outlook.
