German yields touch 15-year high, Fed's Warsh in focus
TLT•German yields hit 15-year high as bond pressure builds
Aug. 28 (Reuters) - Germany's 10-year government bond yield rose to a 15-year high on Friday as investors remained concerned about persistent inflation and fiscal pressures, while Federal Reserve Chair Kevin Warsh was more transparent on his outlook for rates.
Warsh's comments at the Jackson Hole Symposium had been eagerly awaited but did little to move bond markets in Europe, even if he did provide a bit more clarity on inflation and future rate moves.
The Fed chair said that the central bank would have "work to do" if above-target inflation were to persist.
"Warsh’s speech at the Jackson Hole Symposium delivered a far clearer – and hawkish – message than his last press conference appearance," said Stephen Brown, chief North America economist at Capital Economics.
His approach to refrain from offering forward guidance on interest rates has unsettled bond markets, helping push bond yields higher, not just in the U.S., but in Germany, France, Japan and others.
