Jackson Hole becomes a key battle for U.S. bonds, Bank of America warns: If Waller does not signal a rate hike, the 30-year yield may soar to 5.5%

Bank of America believes that under the backdrop of the Treasury increasing the repurchase of long-term bonds and the dollar being under pressure, if Waller can clearly signal anti-inflation measures and the possibility of restarting interest rate hikes when necessary, it will help stabilize the market and flatten the yield curve; conversely, if he avoids policy statements, the yield on 30-year U.S. Treasuries may test the high of 5.5%, and the dollar will also face a new round of downward pressure.

Source: ChainCatcher