MNI BRIEF: Fed's Daly- Yield Rise Reflects Optimism

San Francisco Federal Reserve President Mary Daly said Tuesday the recent jump in bond yields mostly reflects investor optimism about the economic backdrop, and policy makers must be patient with a mechanical acceleration of inflation compared with last year's weakness.

"Investors think that the future is a little brighter," she told reporters about higher yields after a speech. "In many ways, it's a good piece of news."

"We're going to have to have a big dose of patience in the summer, when the Covid 12-month math comes to us and inflation starts to rise, and perhaps reaches our 2% number, but it will be short lived."