10-year Treasuries rose on Wednesday as investors weighed comments from Federal Reserve Governor Lael Brainard, and waited for the latest thoughts on Fed policy tightening.
The 10-year Treasury yield reached a high of 2.6125% at 4:30 AM ET. The move put the benchmark price well above its two-year counterpart, which was trading around 2.5714%. The two years recently traded above 10 which results in a so-called yield curve inversion.
return on 5 year US government bonds It rose about 6 basis points to 2.7635% and 30-year Treasury yield It rose to 2.6204% adding 4 basis points. Returns move inversely with prices and one basis point is 0.01%.
Brainard, who usually favors easy policy and low rates, said the central bank needs to move quickly to bring down inflation.
“Inflation is too high and is subject to upside risks.” She said in prepared statements Tuesday. “The committee is prepared to take stronger action if inflation indicators and inflation expectations indicate that such action is justified.”
Investors are also awaiting the minutes of the Federal Reserve’s previous meeting, due out on Wednesday afternoon, for any clues to the central bank’s plan to tighten monetary policy.
– CNBC’s Vicki McIver and Samantha Sobin contributed to this market report.
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