Fed's Clarida: Surprised by magnitude of decline in bond yields

Fed Vice Chair Richard Clarida noted on Wednesday that he has been surprised by the magnitude of the decline in the bond yields, as reported by Reuters.

Additional takeaways

"Global move in bond yields is quite pronounced."

"Bond moves are not driven by a drop in inflation expectations."

"Bond moves could be due to fears about the virus, still analyzing it."

"Too soon to embrace secular stagnation as the reason for the move in bond yields."

"The reality check on inflation is measuring a wide range of measures."

"Opening up of global economy is putting upward pressure on commodity prices."

"More will become apparent about strength of labor market over next several months."

"Baseline view is that there will be healthy increases in employment gains in the fall."

Market reaction

The US Dollar Index continues to push higher following these comments and was last seen rising 0.22% on the day at 92.26.