Treasury Yields Retreat But Could Still Trend Higher

Treasury yields pull back, with the 10-year retreating from Thursday’s 16-year high, but they could still move higher, Spartan’s Peter Cardillo says. “There is a rush to sell bonds” with little to do with economic fundamentals, he says. “There is a lot of speculation, yields aren’t necessarily rising for the right reasons.” He says Chair Powell may indicate next week in Jackson Hole that, if inflation keeps cooling, the Fed might skip in September, and that would trigger a downshift in yields. Until then, “the intermediate trend remains higher.” The 10-year is at 4.919%, and the two-year at 4.923% both off early lows.