Monetary Policy Expectations were Main Movers of Bond Yields in Much of August

1156 GMT - Monetary policy expectations were the main drivers of government bond yield rises in much of August, Fidelity International's Marion Le Morhedec says in a note. Two-year U.S. Treasury yields rose and 30-year yields fell slightly, flattening the curve as markets reassessed the Federal Reserve's reaction function, the global fixed income CIO says. "Jackson Hole reinforced that move, with Chairman Kevin Warsh reiterating the U.S. Federal Reserve's commitment to its 2% inflation target and markets increasing the probability of a September hike to around 60%, she says. More recently longer-dated yields have joined the selloff, suggesting a broad reassessment by investors of the term premium--the additional compensation investors demand for buying long-dated bonds--, she says.