US Treasury yields hardened sharply following Federal Reserve Chair Kevin Warsh’s Jackson Hole speech, as markets interpreted his remarks as a clear signal that the Fed remains prepared to tighten policy further if inflation fails to show a convincing and sustained return towards its 2% target. The 10 year US Treasury yield rose to around 4.72%, while the policy sensitive front end witnessed a sharper sell off as expectations of a near-term Fed rate hike increased.
