NEW YORK (Reuters) - The recent jump in U.S. bond yields suggests "conflicting factors," including a proposed new North America trade agreement, is clouding overall uncertainty among investors over future economic growth prospects, Federal Reserve Bank of Dallas President Robert Kaplan said on Tuesday.
The 10-year Treasury yield, which reached a fresh multi-year high on Tuesday, shows "there are lots of conflicting factors going on" including trade and waning fiscal stimulus, he told reporters. Prior to last week's abrupt market move, the year-long flattening of the yield curve suggested that "prospects for future U.S. growth are somewhat sluggish," he added.
U.S. Treasuries have been sold off recently as strong data fueled fears about rising inflation and a potentially faster pace of rate increases by the Fed. "I'm always careful not to over-read or over-attribute certain factors," Kaplan added after addressing the Economic Club of New York.
(This version of the story corrects headline and throughout to show Kaplan's view that flat yield curve reflected uncertainty, while yield rise reflects 'conflicting factors')