The yields on the United States Treasury notes rose on Monday to multiyear highs. Over the past several months, Federal Reserve officials have continuously stressed they are committed to pushing inflation down to the 2% target, a plan that could entail an accelerated timeline for tightening the monetary policy and for raising interest rates. Bond traders are seemingly concerned about a potentially sharp economic downturn such restrictive policy could bring.
The return on the 10-year Treasury note added 18.3 basis points to 3.88% at 1:23 pm ET, after surpassing 3.9% for the first time since 2010. The yield on the two-year note was up 11.4 basis points to 4.328% at the same time, after reaching the highest level since 2007 earlier in the day. The return on the 30-year bond rose by nine basis points to 3.702% at 1:23 pm ET, hitting a new eight-year record moments earlier.
