US Treasury yields rose after Federal Reserve chair Jerome Powell struck a hawkish tone, casting doubt on the likelihood of a rate cut at the central bank’s September meeting.
Two-year yields, most sensitive to Fed policy, climbed five basis points to 3.92 per cent, while longer-dated maturities also edged higher during Powell’s remarks in Washington on Wednesday (Thursday AEST).
Powell said the board had made “no decision” about a move in September, prompting traders to scale back expectations for cuts this year. Markets are no longer fully pricing in a reduction at the following meeting in October.
