Bond Yields Rise on Real Rates, Not Inflation Fears

Fed's Hammack says surging bond yields are driven by real rates and economic outlook, not inflation fears.

According to Beth Hammack, President of the Federal Reserve Bank of Cleveland, the recent increase in government bond yields is not a result of lost confidence in inflation control.

Hammack stated that 'it's real rates that have moved up more than the inflation expectations' and that rising bond yields reflect a solid economic outlook and competition for investor cash due to strong tech sector investment.