Treasuries-Two-Year Yields Highest Since March 2020, Longer-Dated Yields Dip

  • Two-year Treasury yields hit almost two-year highs on Tuesday, following tepid demand for an auction of the notes on Monday, while longer-dated yields dipped but held within their recent ranges in light trading. 
  • Two-year note yields, which are highly sensitive to interest rate shifts, have risen to the highest since March 2020, with the Federal Reserve seen closer to raising rates as the U.S. economy rebounds from COVID-19 related shutdowns and inflation surges. 
  • A $56 billion auction of two-year notes on Monday saw soft demand, pricing at a high yield of 0.769%, around half a basis point above where they had traded before the sale. 
  • Longer-dated yields dipped slightly but held within their recent ranges before the Treasury is due to sell new intermediate-dated debt.

(Source: Yahoo Finance)