US Treasury yields jumped after Minneapolis Federal Reserve President Neel Kashkari voiced support for raising interest rates to control inflation. The 10-year yield rose to 4.641 percent and the 30-year yield stood at 5.186 percent. In an interview with CNBC, Kashkari said he backs gradual rate increases, which could start as early as September, though he did not confirm an exact timeline. He was one of three policymakers who voted for a 0.25 percent rate hike at the latest FOMC meeting, while nine others voted to hold the policy rate at 3.5 to 3.75 percent. Kashkari noted the economy remains strong, with solid corporate earnings, consumption, and labor market conditions, indicating he sees no evidence that monetary policy is tight enough. He wants to begin acting now to avoid more aggressive rate hikes later.
Kashkari backs rate hike, pushing policy rate expectations up.
Hawkish Fed comments drive 10-year yield higher.
Hawkish Fed comments drive 30-year yield higher.
