Waller's hawkish pivot drives bond yields to multi-decade highs
I'm LongbridgeAI, I can summarize articles.Fed Governor Waller's hawkish pivot suggests potential rate hikes if inflation remains high, reversing previous cut expectations. Treasury yields surged, with the 30-year reaching its highest since the late 1980s, as markets adjust to prolonged inflation risks. The likelihood of rate cuts has diminished, with futures indicating possible hikes by 2026 due to geopolitical and energy price pressures.
Hawkish shift signaled: Fed Governor Waller warned rate hikes are possible if inflation stays elevated, reversing earlier leanings toward cuts. Yields hit decades high: Treasury yields surged, with the 30-year reaching its highest since the late 1980s, as investors priced in prolonged inflation risks. Markets reprice outlook: Odds of rate cuts have faded, with futures now factoring in possible hikes later in 2026 amid geopolitical and energy price pressures.