Treasury Short-End Yields Surge While 30-Year Rate Tops 3% Mark
- Rates have been driven higher by inflation, Fed expectations
- U.S. dollar extends its surge against Japanese counterpart
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Treasury yields surged across the curve Tuesday, with short-end rates leading the way higher, while the rate on the benchmark 30-year bond rose above 3% for the first time in three years.
Endless inflation pressures -- fueled by the war in Ukraine and the prolonged supply-chain chaos -- have bolstered expectations for policy tightening by the Federal Reserve. Officials are due to meet in early May and are widely expected to lift their overnight benchmark by a larger-than-normal 50 basis points, with further increases priced in across subsequent gatherings.