The Economist has an interview with NY Fed chief Bill Dudley. He says that if US yields are rising for the right reasons, the Fed won’t have to keep buying (or add to its $300 bln announced intentions) Treasuries.
The dollar has continued its comback on the remarks which can be found here.
To the extent yields are going up because the economic outlook is brighter, the answer would be, don’t do anything. That’s what we expect and hope for.
