Skip to content

Treasury Market’s Brutal New Year Conjures Return of 2% Yields

  • Ten-year yield surged to highest since early 2020 in selloff
  • Inflation figures, auctions test market rattled by hawkish Fed
Treasury Says New Law Only Way To Fully Contain Stablecoin Risks
Photographer: Samuel Corum/Bloomberg

The torrid selloff that raced through the Treasury market this past week has investors bracing for further losses that would push the benchmark 10-year yield toward 2%, with growing expectations the Federal Reserve is poised to act quickly to tamp down the steepest inflation in four decades. 

The relentless surge in yields has drawn comparisons with the sharp rise a year ago that extended across the opening three months of 2021. So far, the 10-year note yield has jumped from 1.51% on Dec. 31 to as much as 1.8% on Friday, the highest since January 2020. That sets up the market to soon challenge the year-end target of 2.04% from strategists surveyed by Bloomberg.