US Yields Spike as Hawkish Powell Puts 5% in Play: Markets Wrap

The world’s biggest bond market was hammered anew, with the two-year yield briefly hitting 5% after Jerome Powellsignaled policymakers are in no rush to cut interest rates.

Treasury yields climbed to fresh 2024 highs as the Federal Reserve chief said it will likely take longer to have confidence on inflation — adding that it’s appropriate to give restrictive policy time to work. The dollar saw its best five-day gain since October 2022, while the slide in stocks from a record deepened.

Jerome Powell.

Photographer: Samuel Corum/Bloomberg

Powell’s remarks represented a shift in his message after a third straight month in which a key ...