Fed officials’ comments and hotter-than-expected CPI sparked a US market
sell-off, putting Treasury yields back in focus. Markets have largely priced Fed
tightening, but a sharp drop in oil could temporarily pause the rise in yields
in the coming weeks. Commonwealth Bank rate strategist Jack Chambers says he is
watching both factors but still sees scope for higher yields: stronger economic
momentum and firmer Fed-hike expectations should keep the 10-year US Treasury
yield biased to the upside near term.