Hawkish Fed speak Seen As Cause Of Treasury Yields Rise

Treasury yields are rising on hawkish fed speak and the 10-year is likely to reach 4.15% before leveling off, Spartan’s Peter Cardillo says. The benchmark is at 4.121%, after settling at 4.064% yesterday. Stronger-than-expected December retail sales gave a boost to yields this morning, but Cardillo says the data was still off last year’s highs, implying that “the consumer is feeling the pinch of the higher cost of money.” In his view, the sustained rise on yields has more to do with policymakers pushing back against bets on early rate cuts.