Bond market seeks clues on Fed rate path with March hike a lock

Two-year Treasury yields, which are highly sensitive to monetary policy changes, have already climbed to the highest since September 2019 with the Fed poised to begin a cycle of rate hikes to slow the steepest inflation surge in four decades.

NEW YORK: Bond traders are virtually certain the Federal Reserve (Fed) will raise interest rates by a quarter percentage point on Wednesday. What they’re watching for is where the central bank is heading after that.

Two-year Treasury yields, which are highly sensitive to monetary policy changes, have already climbed to the highest since September 2019 with the Fed poised to begin a cycle of rate hikes to slow the steepest inflation surge in four decades.