Treasury Yields Jump as Conviction on Fed Hikes Grows
- Key economic data this week pose risk of earlier rate hikes
- Two-year yield exceeds 0.80%, highest since March 2020
The Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S., on Sunday, Dec. 19, 2021.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
Treasury yields surged, with 10-year notes recording their worst start to a year in more than a decade, as investors embraced risk despite the pandemic’s grip on the economy.
Benchmark yields climbed across the curve, led by the 10-year, which jumped as much as 13 basis points and exceeded 1.60% for the first time since the omicron variant emerged in November. That was the 10-year yield’s largest first-day increase since 2009, according to data compiled by Bloomberg. The 30-year yield climbed as much as 14 basis points to top 2%, while the two-year yield surpassed 0.80%, to reach its highest level since March 2020.