Yahoo Sport

TREASURIES-10-year yields hit 5-month high as Fed rate cut hopes fade

Benchmark U.S. 10-year Treasury yields climbed to five-month highs on Tuesday as markets reevaluated how quickly the Federal Reserve may move to cut interest rates this year given signs of strength in the global economy. Fed Chair Jerome Powell said in an appearance Tuesday that the central bank may need to keep rates higher for longer than previously thought and that "it's likely to take longer than expected to achieve that confidence" that inflation is falling toward the Fed's 2% target. In what has come to be known as the Fed's higher-for-longer stance, Powell added that "If higher inflation does persist, we can maintain the current level of restriction for as long as needed."