Source: US Dept. of Treasury End of Day
• Rates moved higher last week with the 2-year increasing by six basis points to 4.24% while the 5-year Treasury notes increased seven basis points to 4.43%.
• Markets will closely monitor the Jackson Hole Symposium this week, though Fed Chair Warsh is expected to maintain his data-dependent approach and provide limited forward policy guidance.
• July FOMC minutes revealed a more hawkish tone than previously communicated, with several policymakers signaling support for additional rate hikes if inflation remains above target.
• Long-term Treasury yields climbed to multi-decade highs as investors demanded additional compensation for elevated debt issuance, geopolitical risks, and ongoing policy uncertainty.
• Record Treasury borrowing needs and robust AI-driven corporate issuance are increasing competition for capital, creating supply pressures that continue to push yields higher.
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