The yield on U.S. Treasury notes climbed above 3.9%

U.S. Treasury note yields continued to rise today as the Federal Reserve (Fed) is set to raise interest rates by 0.75-1.00% at its monetary policy meeting next week.

The yield on the 2-year U.S. Treasury note, which response to the Fed’s monetary policy, rose above 3.9% on the day, reaching its highest level since 2007 and well above yields on the 10- and 30-year U.S. Treasury notes.

Short-term Treasury yields jump higher than long-term ones. This leads to an inverted yield curve on the U.S. bond market, which points to a recession in view of the Fed’s accelerated rate hikes.

The yield on 2-year Treasury notes was 3.884%, having previously risen above 3.9%, while the yield on 10-year notes was 3.451% and the yield on 30-year Treasury notes was 3.485%.

U.S. Treasury yields rose after inflation in the U.S. was higher than expected.

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