Photo by Mark Wilson/Getty Images
Wall Street is increasingly expecting the Fed to step in and cool the volatile Treasury market.
Yields surged in recent weeks as investors bet on growth to exceed the Fed s projections.
If the chaos continues without Fed action, rising yields could prematurely lift borrowing costs.
The Treasury market s sell-offs caught the Federal Reserve s attention. What the central bank does next is anyone s guess.
The recent surge higher in Treasury yields actually followed a flurry of good news. Democrats massive stimulus bill, which promises to amplify consumer spending, edged closer to passage. Daily COVID-19 case counts continued to decline, and the average pace of vaccinations rose above 2 million doses per day. And economic data pointed to strength across service and manufacturing businesses.