(Reuters) – The recent run up in yields on longer-dated U.S. Treasury securities reflects improving expectations for the U.S. economy, St. Louis Federal Reserve President James Bullard said on Friday, adding that he is not eyeing a specific level of yields that might concern him.
The 10-year U.S. Treasury note yield – which rose above 1.61% on Friday – is just returning to the level consistent with the six months before the pandemic, he said, characterizing it as “still quite low level of yields.”
Echoing Fed Chair Jerome Powell’s comments from a day earlier, Bullard said he would be concerned by disorderly behavior in the Treasury market. “Something panicky would catch my attention, but we’re not at that point.”
(Reporting By Dan Burns; Editing by Chizu Nomiyama)
