Treasury Yields Hold Steady as Investors Look Ahead to Jerome Powell’s Jackson Hole Speech
U.S. Treasury rates were slightly changed on Friday as investors waited for Federal Reserve Chairman Jerome Powell's address at Jackson Hole, which would be critical to understanding the course of monetary policy.
At 5:22 a.m. ET, the 10-year Treasury yield jumped by less than one basis point to 4.337%. The two-year Treasury yield was likewise less than a basis point higher, at 3.795%.
One basis point equals 0.01%; therefore, yields and prices go opposite ways.
At 5:22 a.m. ET, the 10-year Treasury yield jumped by less than one basis point to 4.337%. The two-year Treasury yield was likewise less than a basis point higher, at 3.795%.
One basis point equals 0.01%; therefore, yields and prices go opposite ways.
The big event for investors today will be Powell's address in Jackson Hole, Wyoming, where global central bankers have been convening since Wednesday for the Federal Reserve's annual economic symposium.
It will be one of the most important speeches given by a central bank official since it will lay out the bank's long-term economic intentions, such as inflation targets and how it views employment. The speech will also provide greater clarity on the interest rate forecast and how Powell intends to handle his dual mandate.
According to the CME Group's FedWatch tool, markets were last pricing in a 71% possibility of interest rate cuts at the September meeting.
It will be one of the most important speeches given by a central bank official since it will lay out the bank's long-term economic intentions, such as inflation targets and how it views employment. The speech will also provide greater clarity on the interest rate forecast and how Powell intends to handle his dual mandate.
According to the CME Group's FedWatch tool, markets were last pricing in a 71% possibility of interest rate cuts at the September meeting.
It's also worth noting that this will most likely be Powell's final address before his term as Fed chairman ends in May 2026.
"We'll learn more about the Fed's thinking today in Jackson Hole, with all eyes on Powell's speech at 10 a.m. EST," Deutsche Bank analysts wrote in a note. "Investors will be keenly watching whether Powell places more emphasis on weaker payrolls versus more stable measures of labour market slack and still solid activity and inflation data."
"We'll learn more about the Fed's thinking today in Jackson Hole, with all eyes on Powell's speech at 10 a.m. EST," Deutsche Bank analysts wrote in a note. "Investors will be keenly watching whether Powell places more emphasis on weaker payrolls versus more stable measures of labour market slack and still solid activity and inflation data."