Short-term Treasuries were on a tumultuous path Wednesday morning, with yields moving higher after hitting a low not seen in three years.
The 2-year yield settled at 3.477% on Tuesday, its lowest yield since Sept. 7, 2022, according to Dow Jones Market Data. It hovered around that level this morning, but it’s now at 3.495%. The 2-year Treasury rate serves as a barometer for near-term interest rates and inflation expectations.
Future markets are pricing in two more interest-rate cuts this year, CME data shows, after Fed Chair Powell in a speech on Tuesday cited the labor market and said there’s room for further cuts. Meanwhile, the market is dealing with the fresh onslaught of trade tensions with China that’s further added to the appeal of 2-year notes.
