Home›Bonds & Rates›Central Banks›Warsh speech at Jackson Hole boosts rate hike odds, li…

Warsh speech at Jackson Hole boosts rate hike odds, lifts yields

After the remarks, 2-year Treasury yields rose more than 12 basis points, and mortgage-backed securities fell 3/8 of a point.

Reported · Written up by our desk · Central Banks

Housing and rates moved lower and higher respectively after a hawkish Jackson Hole speech from Federal Reserve official Kevin Warsh shifted market expectations toward tighter policy.

Mortgage News Daily reports that Warsh focused on inflation concerns while offering a more upbeat read on the economy, which the market interpreted as increasing the chance of a rate hike before the end of 2026.

By the close, 2-year Treasury yields rose more than 12 basis points, while the 10-year yield was up about 1.5 basis points to 4.686.

Housing-market signals also weakened, with mortgage-backed securities down 3/8 of a point and mortgage rates topping their highest levels in about three weeks following the speech.

More like this

Sources