Fed’s Hammack: Rising Long-Term Treasury Yields Reflect Multiple Factors

Hammack's framing matters because it treats the rise in long-term yields as partly a growth story and partly a fiscal-risk story, rather than a single signal about Fed policy. That distinction shapes how the curve is read: term-premium concerns tied to government debt sit alongside tightening expectations, and the two can pull in different directions. Whether markets continue to price additional tightening, and whether debt concerns keep feeding into the long end, is the open question.