China bond market diverges from US as Warsh strikes hawkish tone at Jackson Hole

In the US, the 30-year yield was wavering near a two-decade high of 5.304 per cent, with investors continuing to demand the so-called term premium even after Treasury Secretary Scott Bessent said he would double a buy-back programme to rein in the bond rout. Warsh’s surprisingly hawkish comment at the Jackson Hole symposium on Friday came as the latest frustration for Treasuries. The front-end yields rose immediately after Warsh focused his speech on restoring price stability, implying policy priority of inflation over employment. Warsh’s scrapping of forward policy guidance in a shift of approach to market communications may add more…