US 10-year yield hits 19-year high as Fed Governor Barr backs further hikes

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The US 10-year Treasury yield climbed to a 19-year high after Federal Reserve Governor Barr made the case for additional rate increases. Barr said the risks to bringing inflation back to 2% have grown, while the risks to jobs have eased. His remarks reinforced expectations that the Fed may keep tightening policy. The move in the benchmark yield followed his comments as investors weighed the prospect of further hikes.

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Fed Governor Barr backs further rate hikes, reinforcing expectations the Fed keeps tightening, which pushes the effective fed funds rate higher.