Powell Testimony Drives Up Shorter-Term Bond Yields

Yields on shorter-term U.S. Treasurys jumped after Federal Reserve Chair Jerome Powell said that the central bank would likely raise interest rates higher than previously expected. The yield on the two-year Treasury note closed at 5.011%, its first close above 5% since June 2007.

March 9, 2023 . 12:37 PM

1 min read

Yields on shorter-term U.S. Treasurys jumped after the text of Jerome Powell's congressional testimony was released.
The yield on the two-year Treasury note closed at 5.011%, its first close above 5% since June 2007.
Yields rise when bond prices fall, suggesting investors are confident the Fed will need to cut interest rates in the future.
Powell said the Fed is prepared to accelerate the pace of rate increases if necessary.
Bets in futures markets reflect roughly two-thirds odds of a half-point move at the coming meeting.