There’s more behind the rise in Treasury yields | Market Week in Review

Russell Investments' Kris Tomasovic Nelson walks through why U.S. Treasury yields have risen in a Market Week in Review video, arguing the move reflects more than Federal Reserve policy expectations, including inflation uncertainty, fiscal policy, government bond issuance and a higher term premium. The video also reviews resilient jobs data with moderating wage growth, higher oil prices, and an August CPI report the firm calls a mixed inflation signal, before turning to the policy trade-offs facing global central banks.

1. Resilient U.S. jobs data supports the case for keeping rates steady.
2. Rising yields reflect more than Fed expectations, with inflation uncertainty, fiscal policy and bond issuance lifting the term premium.
3. August headline CPI rose 0.4% for the month and 3.4% year over year, while core CPI was about 0.3% month over month and 2.4% year over year.
4. Employment remains resilient while wage growth has moderated, which the firm says supports a healthy growth outlook without significant wage-driven inflation pressure.