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2026-09-17 03:28:11
[2-Year US Treasury Yield Hits Two-Year High as Traders Bet on Further Fed Rate Hikes] Short-term US Treasury yields rose immediately after the Federal Reserve announced its first interest rate hike since 2023, while simultaneously signaling potential further measures to curb inflation. The 2-year Treasury yield climbed to 4.73%, its highest level since 2024, more than 10 basis points higher than before the rate decision. Long-term Treasury yields lagged behind, with the 10-year yield continuing its downward trend, last quoted at 4.97%. This rate hike was already widely anticipated by the market, with investors focusing primarily on the Fed's quarterly economic projections, which showed more Fed policymakers supporting further monetary tightening. Traders are currently increasing their bets on another Fed rate hike this year, and the market has almost fully priced in expectations of three rate hikes by mid-2027. Ed Hutchings, head of interest rates at Aviva Investors, noted, "Further rate hikes should clearly be on the Fed's policy agenda. Given the Fed's statutory mandate to maintain price stability, the outlook for inflation remains a key concern."
