Yields on 10-year notes rose to 2.554%, while those on two-year notes gained 2.5241%. Two-year and five-year yields hit multi-year highs and 10-year yields stayed near their highest since May 2019. The return on 30-year debt improved to 2.582%.
According to the operators, the recent decision of the Fed to raise rates tends to affect the short part of the curve morewhile the duration of the sale held on the US central bank’s balance sheet puts pressure on yields on the long end.
“The market is focused right now on the Fed’s intentions for its balance sheet, which has led the yield curve to reverse some of the inversions we saw last week,” said Jim Barnes of Bryn Mawr Trust.
The Fed is to release minutes from its March meeting on Wednesday, which are expected to offer new details on the pace and scope of its plans to reduce its bond holdings.
Source: Ambito
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