The two-year Treasury yield posted its biggest four-session jump since the Fed's 2022 hiking cycle. Expectations are growing for more rate hikes, and MarketWatch links the volatility to Fed Chair Kevin Warsh's quiet communication style.
The part of the Treasury market most sensitive to Federal Reserve rate changes just logged its biggest four-session yield jump since the central bank's hiking cycle of 2022.
The 2-year Treasury yield surged 38.8 basis points over the past four trading sessions, not counting Wednesday, when the bond market was closed for Veterans Day. It reached 4.862% on Thursday. One basis point is 0.01 percentage point.
MarketWatch says the move comes as expectations grow for more Fed rate hikes. It also says Warsh's quiet style of communicating interest-rate policy has led to more volatile markets.
Source: MarketWatch (snippet-based)
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