Fed’s Kaplan: Makes sense for 10-year T-bond yield to drift up this year

 Dallas Federal Reserve Bank President Robert Kaplan said on Wednesday that there is still a lot of labour slack in the US and added that it will take a while to get back to full employment, as reported by Reuters.

“Once we’ve weathered the pandemic and are meeting other benchmarks, I will advocate for removing extraordinary measures,” Kaplan reiterated. “It makes sense the 10-year Treasury yield drifts up this year, not alarming.”

Market reaction

Kaplan’s hawkish comments don’t seem to be helping the greenback gather strength. As of writing, the US Dollar Index was posting small daily losses at 91.79.