Siegeled Sees Market Rally Catalyst in Warsh's Speech

Financial markets are on edge due to rising bond yields and inflation jitters. However, Wharton professor Jeremy Siegel believes that yields at current levels do not signal a dire market outlook.

Siegel pointed out that the Treasury's intervention in the bond market has pushed long-dated bond yields lower. The 10-year Treasury yield dipped 3 basis points to 4.7%, while the 30-year yield fell 4 basis points to 5.2%.

According to Siegel, Fed Chair Kevin Warsh can spark a new market rally by revealing specific data points that the Fed is using to make monetary policy decisions. 'What criteria are you looking at? Are you looking at the five-year inflation expectations? Are you looking at the Fed funds futures market?' he asked.

Siegel believes that if Warsh provides this information, it could lead to a significant market rally on Friday. However, he also warned that if Warsh's speech is lackluster and does not provide any new insights, it could lead to further market volatility.