10-year Treasuries rose Wednesday to levels not seen since 2019, as investors weighed comments from Federal Reserve Governor Lael Brainard and waited for the latest ideas on central bank policy tightening.
The benchmark price is trading around 2.67%, close to its highest level since March 2019, seeing a massive jump in two days. The 10-year bond closed Monday at about 2.4%.
Wednesday’s 10-year move placed it significantly higher than its 2-year counterpart, which traded at 2.571%. The two years recently traded above 10 which results in a so-called yield curve inversion.
return on 5 year US government bonds moved to 2.779%, and 30-year Treasury yield It increased to 2.669%. Yield moves inversely with prices, and one basis point is 0.01%.
Brainard, who usually favors easy policy and low rates, said the central bank needs to move quickly to bring down inflation.
“Inflation is too high and prone to upside risks” She said in prepared statements Tuesday. “The committee is prepared to take stronger action if inflation indicators and inflation expectations indicate that such action is justified.”
Investors are also awaiting the minutes of the Federal Reserve’s previous meeting, due out on Wednesday afternoon, for any clues to the central bank’s plan to tighten monetary policy.
– CNBC’s Vicki McIver and Samantha Sobin contributed to this market report.
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