Treasury Yields Slip Ahead of Jackson Hole

Published 22/08/2025, 07:50
Updated 22/08/2025, 09:26

U.S. Treasury yields edged lower in Asian trading as investors awaited Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium.

The 2-year yield dipped 0.7 basis points to 3.784%, while the benchmark 10-year yield eased 0.2 basis points to 4.328%, according to Tradeweb.

Markets largely expect Powell to avoid any major policy surprise. Instead, he is likely to frame the discussion around long-term structural challenges such as aging demographics, slower productivity, and the limits of monetary policy in addressing supply-side shocks. With September rate cuts already priced in, traders are focused on the Fed’s guidance regarding the pace and depth of easing.

The modest decline in yields reflects defensive positioning. Investors appear reluctant to take large directional bets until Powell’s tone is clear. If he stresses risks to growth and signals flexibility, yields could fall further as markets reinforce bets on aggressive easing. Conversely, if Powell leans on economic resilience, yields may retrace higher as markets temper expectations for rapid cuts.

The outcome of Powell’s speech carries weight beyond Treasurys. Equity markets are hoping for confirmation that easing will extend the cycle, while the dollar could weaken further if Powell’s tone tilts dovish. At the same time, a focus on long-term themes without near-term policy clarity may fuel volatility across asset classes.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.