The US Treasury market notched a record annual loss in 2022, fueled by inflation pressures that prompted the Federal Reserve to hike its overnight benchmark by more than four percentage points.
Yields peaked in October or November, then retreated as inflation gauges began to show moderation and Fed officials slowed the pace of policy tightening. The yield curve inverted, with rates for 5-year notes first exceeding those for 30-year securities in March, while the gap between two- and 10-year yields also flipped.
