The 10-year Treasury rose Wednesday as investors weighed remarks from Federal Reserve Governor Lael Brainard, and awaited the latest insights into the Federal Reserve’s policy tightening.
The 10-year Treasury note yield hit a high of 2.6125% at 4:30 a.m. ET. The move put the benchmark rate well above its 2-year counterpart, which traded around 2.5714%. The 2-year had recently been trading above the 10-year triggering a so-called yield curve inversion.
The yield on the 5-year U.S. government bond moved about 6 basis points higher to 2.7635% and the 30-year Treasury yield rose to 2.6204%, adding 4 basis points. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Treasurys
Brainard, who normally favors easy policy and low rates, said the central bank needs to move quickly to drive down inflation.
“Inflation is much too high and is subject to upside risks,” she said in prepared remarks Tuesday. “The Committee is prepared to take stronger action if indicators of inflation and inflation expectations indicate that such action is warranted.”
Investors are also awaiting the minutes from the previous Fed meeting, due out on Wednesday afternoon, for any clues to the central bank’s plan for tightening monetary policy.
— CNBC’s Vicky McKeever and Samantha Subin contributed to this market report.
