2-Year Treasury Yield Holds at 4.155% as Warsh’s Hawkish Fed Keeps Rates at 3.5%-3.75%
Updated
Updated · CNBC · Jun 18
2-Year Treasury Yield Holds at 4.155% as Warsh’s Hawkish Fed Keeps Rates at 3.5%-3.75%
3 articles · Updated · CNBC · Jun 18
Summary
The 2-year Treasury yield was little changed at 4.155% on Thursday after surging more than 16 basis points a day earlier, its biggest Fed-day jump since March 2008.
Warsh’s first Fed meeting left rates unchanged at 3.5%-3.75% but shifted the message toward inflation risks and possible future hikes, dropping prior language that had pointed to eventual cuts.
Longer maturities eased, with the 10-year yield down to 4.428% and the 30-year at 4.871%, while Warsh also declined to submit his own rate forecast and said individual “dots” were not helpful.
Fresh data reinforced the higher-for-longer view: jobless claims rose to 226,000, while the Philadelphia Fed manufacturing index rebounded to 10.3 from minus 0.4, suggesting little immediate pressure for the Fed to cut.