TREASURIES-Yields rise with Fed’s Powell speech in focus

Powell will speak virtually on Friday at the Fed’s annual economic symposium at Jackson Hole, Wyoming. Traders will be watching to see whether Powell expresses fresh concerns about the spread of the Delta coronavirus variant after Dallas Fed President Robert Kaplan, among the U.S. central bank’s most forceful advocates for starting to reduce support for the economy, said on Friday he may need to adjust that view if the coronavirus slows economic growth materially. “Following Kaplan’s well-timed comments on his openness to a later taper if Delta weighs on growth, the presumed likelihood that Powell errs toward dovishness has gone up, leaving the risk of a modest hawkish surprise if he doesn’t,” Jonathan Cohn, a trading strategist at Credit Suisse, said in a report.


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