Waller's Rate Hike Warning Sends Bond Yields Tumbling

Global bond yields fell on Thursday after Federal Reserve Board of Governors member Christopher Waller expressed support for holding interest rates steady if economic conditions warrant it.

In a speech at the Reuters NEXT Newsmaker event in Washington, D.C., Waller said he would consider supporting holding the policy rate at its current level if there is continued progress toward the 2 percent inflation goal.

However, if inflation 'comes in hot' for August, as measured by the personal consumption expenditures (PCE) price index, Waller would consider a rate hike at the next Federal Open Market Committee (FOMC) meeting on September 15-16.

The yield on the 10-year U.S. Treasury bond dipped below 4.75 percent after closing Wednesday above 4.79 percent and peaking at nearly 4.82 percent during intraday trading.