US 2-year Treasury yields climbed up to 6.4 bps as traders focused on inflation risks over employment trends.
US Treasury yields surged yesterday, with the 2-year note leading gains at +6.4 bps, as inflation concerns dominated market sentiment. The belly of the curve underperformed, reflecting heightened sensitivity to price pressures rather than labor market data.
Yield moves ranged from +4.7 bps to +6.4 bps across the US curve, while European curves exhibited bear flattening. The shift underscores a broader repricing of monetary policy expectations amid persistent inflation signals.
Traders largely ignored softer employment narratives, prioritizing inflation risks that could delay potential rate cuts by the Federal Reserve.