U.S. Treasury yields spike on Yellen testimony

Overnight: A testimony from Fed Chair Janet Yellen has set the stage for a rate hike in December. The yield on U.S. Treasury notes spiked to 0.82% as Yellen laid out the preconditions required for a hike saying the December meeting was live. “At this point, I see the U.S. economy as performing well. Domestic spending has been growing at a solid pace.” Yellen said if the data continue to point to growth and firmer prices, a December rate hike would be a ‘live possibility’. “If we were to move, say in December, it would be based on an expectation, which I believe is justified, that - with an improving labor market and transitory factors fading - that inflation will move up to 2 percent” (source: Bloomberg) (VIEW LINK)


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