Rising Treasury Yields Tighten Financial Conditions, Doing Some of Fed's Work

Recent surge in Treasury yields acting like a rate hike without the Fed raising rates. Tightening financial conditions.
Higher long-term yields impact mortgages, car loans, other borrowing costs. Slow economic activity.
Fed officials acknowledge yields doing some of their tightening work for them. But could still hike rates if needed.
Relying on bond yields brings risks. Could loosen if inflation rises. Circular logic and expectations.
For now yields allowing slightly less hawkish Fed. But still monitoring data and could hike if warranted.