Dollar and bond markets are on edge ahead of the Jackson Hole symposium in Wyoming, where Federal Reserve Chair Kevin Warsh is due to deliver a keynote speech on Friday. Treasury Secretary Scott Bessent last week announced the doubling of long-term bond buybacks to a maximum of $4 billion from September 9, a move aimed at curbing a mass sell-off in bond markets. The 30-year Treasury yield hit a 19-year high of 5.173%, while inflation remains above the Fed’s target with the personal consumption expenditures price index rising 3.7% year-over-year in July. Bank of America strategists warn the dollar could face an extended sell-off if Warsh disappoints markets, while some analysts expect a hawkish speech from Warsh to help contain rising Treasury yields.
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