US Treasury Secretary Yellen remarks hitting the news:

  • Fed wants to create financial conditions consistent with bringing down inflation, state of markets feeds into that
  • Unclear what role increased Treasury supply had in recent rise in longer-term rates
  • Says bond markets anticipating fed moves can be helpful complement to monetary policy if participants are 'thoughtful' when reading data
  • Difficult to disentangle expectations about fiscal, monetary path from other factors affecting treasury term premium

Its not unusual for public sector employees to tell those in the private sector that they're doing their jobs wrong. Such advice is best ignored. The job of bond traders, and all traders, is to make $$$, not keep the bureaucrats happy.