Bonds on Edge as Fed Guidance Looms Over Inflation Concerns

The US bond market is bracing for a potential sell-off this week, as investors eagerly await Fed Chairman Kevin Warsh's speech at the Jackson Hole Economic Policy Symposium.

Long-term US bonds have come under pressure in recent weeks, with yields on 30-year Treasuries reaching their highest level since 2007. The Treasury Department responded by announcing plans to double the size of buybacks for longer-dated securities, providing only temporary relief from the sell-off.

Warsh's speech is expected to provide crucial guidance on how policymakers plan to respond to persistent inflation and fiscal concerns, which have weighed heavily on the market. The national debt has surpassed $40 trillion, and inflation has remained stubbornly above the 2% target.