Treasuries Fall as Fed’s Waller Pushes Back on Dovish Rate Bets
- Market may have overreacted to inflation miss, strategists say
- Treasury yields rise after holiday break with PPI looming
Treasuries fell across the curve and the dollar strengthened against most of its major peers after Federal Reserve Governor Christoper Waller pushed back on bets the US central bank was nearing the end of its hiking cycle, while traders were also on alert for a scheduled appearance by his colleague Lael Brainard.
Benchmark 10-year Treasury yields climbed as much as nine basis points to 3.90% as trading kicked off again after a public holiday Friday, befor moving to around 3.88% in New York morning trading. Waller said the Fed has got a ways to go before its stops hiking and the market got “way out in front” over the unexpected cooling in inflation last week. A gauge of the greenback rose as much as 0.6% before shifting to be up around 0.4% on the day.