Still, some traders interpreted his comments as an endorsement of keeping rates around current levels through most of next year.
Yields on the benchmark 10-year Treasury, which move inversely to bond prices, rose briefly to 5% late on Thursday, a closely watched level not seen since 2007.
“That gives people the go ahead to take rates above 5%.”Whiteley said that he sees 10-year yields moving as high as 5.5% before peaking.
An extended climb in Treasury yields risks exacerbating the pressures that have dogged a broad array of assets in recent months.
Still, even if the Fed cuts rates over the next few years, yields could stay above 5% if inflation and growth remain high, he said.
Persons:
Jerome Powell, Brendan McDermid, Stocks, ’ ”, Greg Whiteley, ” Whiteley, ”, Gennadiy Goldberg, ” Goldberg, Powell, Sameer Samana, Alan Rechtschaffen, Rechtschaffen, Robert Tipp, “
Organizations:
YORK, Treasury, Federal Reserve, Federal, Economic, of New, REUTERS, New York Economic, Fed, TD Securities, Wells, Investment Institute, UBS Global Wealth Management, Tipp
Locations:
of New York, New York City, U.S, DoubleLine