Treasuries stumble near 2% at short end even with a hawkish Fed

The Treasury market sell-off ended most dramatically in two-year notes, where yields peaked just below 2%, a level last seen in May 2019. Two-year yields have risen by nearly 50 basis points over the past two weeks and more than doubled from where they began the year – a much bigger move than has preceded previous Fed tightening cycles.(File pic shows the US Treasury Building in Washington)

NEW YORK: Momentum toward higher yields has stalled in the world’s biggest bond market, underscoring how rapidly traders priced in the hawkish message delivered by the Federal Reserve (Fed).

The Treasury market sell-off ended most dramatically in two-year notes, where yields peaked just below 2%, a level last seen in May 2019. Two-year yields have risen by nearly 50 basis points over the past two weeks and more than doubled from where they began the year – a much bigger move than has preceded previous Fed tightening cycles.