U.S. 2-Year Treasury Yield Hits 4.221% High as Fed, PCE and Iran Talks Jolt Bonds
Updated
Updated · CNBC · Jun 22
U.S. 2-Year Treasury Yield Hits 4.221% High as Fed, PCE and Iran Talks Jolt Bonds
3 articles · Updated · CNBC · Jun 22
Summary
The 2-year Treasury yield climbed more than 4 basis points to 4.221% on Monday, its highest since early last year, while the 10-year rose to 4.495% and the 30-year to 4.934%.
Thursday's May PCE report is the next key test for bonds, with economists expecting core inflation to accelerate from April in the Fed's preferred price gauge.
Last week's Fed meeting reinforced the selloff after officials kept rates at 3.5%-3.75% but adopted a more hawkish stance, pulling market expectations for the next hike forward to as soon as September.
U.S.-Iran diplomacy added volatility rather than relief: the sides agreed to pursue a deal within 60 days, but Trump's threat of further military action and Iran's renewed Strait of Hormuz closure kept oil and rates unsettled.
Brent crude later fell more than 2% to about $78 a barrel and WTI dropped more than 1% to $75, even as bond prices stayed under pressure.