The 10-year Treasury rose to its highest level since May 2019 on Tuesday as investors weighed remarks from Federal Reserve Governor Lael Brainard, which indicated an aggressive approach to shrinking the central bank’s balance sheet.
The 10-year Treasury note yield hit a high of 2.562% before settling at 2.55%. The move put the benchmark rate well above its 2-year counterpart, which traded around 2.528%. The 2-year had recently been trading above the 10-year triggering a so-called yield curve inversion.
The yield on the 5-year U.S. government bond moved about 15 basis points higher to 2.7% and the 30-year Treasury yield rose to 2.592%, adding almost 12 basis points. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Brainard, who normally favors easy policy and low rates, said the central bank needs to move quickly to drive down inflation.
“Inflation is much too high and is subject to upside risks,” she said in prepared remarks. “The Committee is prepared to take…
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2022-04-05 08:27:14
