Fed’s verbal twist fails to cap long-term yields amid $10.5T debt

TREE NEWS reports: Fed Chair Warsh’s Jackson Hole speech, repeating 2% inflation target and citing inflation 30 times, triggered a market repricing dubbed a ‘verbal twist operation.’ Short-term yields rose (1-year to 4.13%) and long-term yields briefly fell, but 30-year yields closed flat as investors focused on over $10.5 trillion in maturing debt and $2 trillion in new deficit financing over the next year. Gold fell 3.7%, silver 6.5%, and bitcoin dropped.