Bond investors will focus on Kevin Warsh's Jackson Hole speech this week, with a further selloff in long-dated Treasuries at stake as markets look for clues on the Federal Reserve chairman's response to persistent inflation and fiscal concerns. Long-term US bonds have come under pressure in recent weeks, with traders pushing the yield on 30-year bonds to the highest level since 2007 at one point. The Treasury Department responded by announcing plans to at least double the size of buybacks of longer-dated securities, providing only temporary relief from the selloff. Warsh himself has provided little forward guidance since taking the post in May, and his appearance after the last policy meeting sparked a massive selloff, underscoring the market sensitivity surrounding Friday's remarks. In the run-up to Jackson Hole, investors will get a fresh look at price pressures with the release of the personal consumption expenditures index for July on Wednesday.
HSBC Holdings PLCPersistent inflation and fiscal concerns, with Warsh's speech potentially triggering further selloff, push yields up.
Long-dated yields at highest since 2007 due to inflation and fiscal worries; buybacks only temporary relief.
