Treasury yields fall as investors brace for Warsh’s Jackson Hole keynote amid bond fears

Treasury yields moved lower Monday as investors look ahead to Federal Reserve Chair Kevin Warsh's keynote speech at Jackson Hole, which takes place later this week against a backdrop of bond market pressure, stubborn inflation and soaring U.S. national debt.

Yields on the 10-year Treasury note — the main benchmark for mortgages, auto loans and credit card debt — were more than 2 basis point lower at 4.7120%.

The 30-year Treasury yield also dropped more than 2 basis points to 5.2497%. The yield on the 2-year Treasury note, which typically reacts in line with short-term Federal Reserve interest rate decisions, was more than 1 basis point lower at 4.2209%.

One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.

Yields on both the 30-year and 10-year notes ended Friday up more than 3 basis points.

Borrowing costs hit multi-decade highs last week as the Treasury Department, led by Scott Bessent, unveiled an extended debt buyback program aimed at easing pressure on the long-end of the yield curve. Yields initially fell before rebounding higher.

Central bankers and economists will gather at the annual Jackson Hole Symposium this week, with traders looking ahead to Federal Reserve Chair Kevin Warsh's keynote address, due on Friday, as sustained inflation pressures and the U.S.'s $40 trillion debt loom over the event.

Warsh's speech will follow a raft of fresh economic data releases this week, including July core PCE price index — the Fed's preferred inflation gauge — and the second quarter GDP estimate.