When a central bank announces a formal policy change to lift inflation, it's reasonable to expect that the government bond market would notice. But so far, there are few signs that US Treasuries are reacting to last month's rollout of the Fed's average inflation-targeting ((AIT)) policy, which is designed to "moderately overshoot" the 2% target for "some time," the bank's chair, Jerome Powell, explained last month.
Since Powell outlined the policy change on August 27, the benchmark 10-year Treasury yield has traded in a tight range, slipping slightly to 0.68% on Monday (September 14),