Treasury Yields Surge as Fed Officials Quash Policy Pivot Talk
- Two- to five-year yields rise more than 20 basis points
- Risk sentiment weathers Pelosi’s historic arrival in Taiwan
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Treasury yields jumped Tuesday after Federal Reserve policy makers’ comments that they’re not close to done fighting inflation prompted traders to reduce bets on rate cuts next year.
US yields increased across the curve, with 10-year rates climbing as much as 18 basis points to 2.75% and the three-year rate rising more than 24 points. Bonds also tumbled as US House Speaker Nancy Pelosi’s visit in Taiwan failed to further undermine risk sentiment in financial markets.