Yellen says rates may need to keep rising to prevent overheating
The S&P 500 is trading near session lows with a 1.3% decline. Earlier, Treasury Secretary Yellen said interest rates may need to keep rising to prevent the economy from overheating. The 10-yr yield, which is seen as the benchmark for inflation/growth expectations, is down three basis points to 1.58% and hasn't made any upwards progress since peaking in late March. Interestingly, Ms. Yellen talked down inflation issues over the weekend, but now appears to be suggesting that in order for this to be true, the Fed needs to allow price discovery in the Treasury market. The CBOE Volatility Index is now up 17.8% to 21.57.