Treasury Yields Rise Ahead of Kevin Warsh Jackson Hole Speech

US Treasury yields rose for a second consecutive day on August 27, 2026, with the 30-year yield reaching 5.2% and seven-year notes hitting a high of 4.512% during a $44 billion auction. The market volatility comes as investors anticipate a keynote address by Kevin Warsh, Chairman of the Federal Reserve, scheduled for Friday, August 29, at the annual economic symposium in Jackson Hole, Wyoming.

Warsh is expected to reaffirm the Federal Reserve's 2% inflation target and emphasize price stability to restore market credibility. However, investors have expressed frustration over his refusal to provide forward guidance on interest rates. While the federal funds rate currently sits between 3.5% and 3.75%, futures markets are pricing in a potential quarter-percentage-point hike by year-end, supported by comments from Kansas City Fed President Jeff Schmid that current policy is not restraining the economy.

The situation is complicated by a policy rift between the central bank and the U.S. Treasury Department. Treasury Secretary Scott Bessent has doubled buybacks of off-the-run debt and intervened in the dollar-yen market to lower yields. Analysts suggest these Treasury interventions may muddle the bond market signals the Federal Reserve uses to gauge growth. Simultaneously, President Donald Trump continues to pressure the Federal Reserve for lower rates and is seeking to remove Governor Lisa Cook to secure a board majority.