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Treasury Yields Higher As Fed Expected To Act On Inflation

US Treasury yields edged higher in uneven trading in a holiday-shortened week on Tuesday as investors prepared for the Federal Reserve to become more aggressive in fighting inflation after Biden nominated its chair Jerome Powell for a second term.

The yield on 10-year Treasury notes was up 3.1 basis points to 1.656%, its highest level in one week and approximately 10 basis points below the yearly high it hit in March.

The yield on the 30-year Treasury bond was up 3.1 basis points to 2.009%.

The move higher in yields was not uniform, however, with the two-year US Treasury yield, which typically moves in step with interest rate expectations, down 2.4 basis points at 0.606% after hitting its highest level since March 2020 on Monday.

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