Rising Yields Test Fed Independence
Surging US Treasury yields are raising credit costs and fueling debate over potential Federal Reserve intervention. However, analysts expect central bank leadership to resist any pressure to bail out the bond market.
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Surging government bond yields are raising credit costs across the United States economy, with the 10-year Treasury note rising above 5% to its highest since 2007. The widening debt market pressure is expected to factor into Federal Reserve monetary policy deliberations. Analysts see the central bank resisting any explicit push from the administration to bail out the market.
