San Francisco Fed’s Mary Daly Sees Global Factors Behind Rising Long-Term Treasury Yields, Affirms Fed Credibility

Mary Daly, President of the Federal Reserve Bank of San Francisco, addressed concerns over the recent increase in long-term U.S. Treasury bond yields, characterizing the trend as a global phenomenon. Speaking on Bloomberg TV on Thursday, Daly emphasized that this rise is not isolated to the U.S. but reflects broader international market dynamics.

According to FX Street, Daly reassured that the Federal Reserve’s credibility remains intact despite these market movements. She dismissed fears that the Fed’s reputation could be undermined by shifts in bond yields, suggesting confidence in the central bank’s monetary policy approach.

For Japanese investors, understanding that U.S. Treasury yield changes stem from global factors is crucial, as these yields influence capital flows and risk sentiment in Asia’s FX and equity markets.