Williams says real rate expectations are pushing bond yields higher
Williams says expectations of real rates are a big part of higher bond yields.
Published
Chart: US10Y, US 10-year Treasury yield, one-minute prices, three sessions
New York Fed president John Williams said higher expectations of real interest rates are a major driver behind the recent rise in bond yields.
Williams' framing lines up with what the market has already priced in: real rate expectations, not a surprise shift in policy stance, are behind the move in yields. Fed Governor Michael Barr has separately said more rate hikes are likely needed to bring inflation down to the Fed's 2% goal. Taken together, the remarks suggest the Fed is not signalling a new hawkish turn, and that traders have already absorbed the broader tightening narrative.