Bond investors are set to closely monitor Kevin Warsh's upcoming speech at Jackson Hole this week, looking for clues on how the Federal Reserve Chair might address persistent inflation and fiscal challenges, as long-dated US Treasuries could face renewed selling pressure.

Long-dated US government bonds have come under significant strain in recent weeks, with traders at one point pushing the 30-year Treasury yield to its highest level since 2007. The Treasury Department's subsequent announcement of plans to at least double the size of its long-dated securities buyback program provided only temporary relief from the selling pressure.

The sharp volatility in yields underscores the importance of Warsh's remarks at the Jackson Hole Economic Policy Symposium on Friday. Traders will be closely watching the Fed's reaction function, particularly how policymakers plan to tackle inflation that continues to run above the central bank's 2% target, as well as the deteriorating fiscal situation, with US debt now exceeding $40 trillion.

Since taking office in May, Warsh himself has offered little in the way of forward guidance. His public appearance following the last policy meeting triggered significant market selling, highlighting just how sensitive markets are to his Friday speech.

"If it's more of the same, I think the market will be disappointed, and that could exacerbate the long-end selling we've already seen," said Molly Brooks, US rates strategist at TD Securities.

The factors weighing on the bond market remain intact, including fiscal concerns, inflation, and uncertainty over the Fed's response, said Kathy Bostjancic, chief economist at Nationwide Mutual Insurance Company. "The underlying drivers of higher long-term yields are still there," she said.

Dhiraj Narula, rates strategist at HSBC, noted that Warsh has an opportunity to reassure investors by further clarifying his policy outlook. Ahead of the Jackson Hole gathering, investors will revisit price pressures through Wednesday's release of the July Personal Consumption Expenditures index. Over the past month, inflation, employment, and retail sales data have all come in at or below market expectations, prompting traders to scale back their bets on near-term rate hikes.