Yellen Says Yield Surge Is Due to Strong Economy, Not Deficits
- Benchmark US Treasury yields have climbed to pre-crisis highs
- Treasury chief downplays idea budget worries drive yield rise
Janet Yellen
Photographer: Valerie Plesch/BloombergThis article is for subscribers only.
Treasury Secretary Janet Yellen said the surge in longer-term bond yields in recent months is a reflection of a strong US economy, not the jump in government borrowing driven by a widening fiscal deficit.
“I don’t think much of that is connected” to the US budget deficit, Yellen said at an event in Bloomberg’s Washington office Thursday. “We’re seeing yields go up in most advanced countries.”