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Colby Smith reports that Lorie Logan of the Dallas Federal Reserve attributes recent increases in long-term yields to brighter growth expectations, evolving views on the neutral rate, and higher term premiums.
Logan also indicated that additional rate hikes are needed to bring inflation back to 2 percent, while higher term premiums are impacting the bond market.
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Recent jobs data has supported the Federal Reserve's focus on inflation, according to Colby Smith's earlier coverage here. John Williams of the New York Fed previously indicated there was no immediate need for a policy move following September's rate hike here. Fed officials continue to monitor economic data as they weigh future rate decisions.