U.S. 2-Year Yield Tops 2% for First Time Since Financial Crisis
- Short-term rates climb as Fed poised to further tighten policy
- CPI, retail sales data drive Fed March hike odds above 80%
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The two-year Treasury yield jumped above 2 percent, marking a rebound to a key psychological level last seen just as the U.S. sank into the depths of the financial crisis in September 2008.
The past 14 months have witnessed a remarkable reversal for the coupon maturity that’s most sensitive to Federal Reserve expectations. After failing to eclipse 1 percent through much of 2016, the yield surged following President Donald Trump’s election victory, and kept climbing throughout 2017 as policy makers delivered on their promised three rate increases.