- Short duration treasury yields clocked fresh decade highs in the overnight trade.
- Fed reiterated its hawkish stance, confirming a Dec rate hike.
The US two-year, three-year, and five-year yields rose to new decade highs yesterday, as the Fed kept rates unchanged, but reaffirmed its hawkish monetary tightening stance, setting the stage for a rate hike in December. Notably, the policy statement showed no sensitivity to recent turmoil in stock markets.
Key points (Source: Reuters)
- US 2-year treasury yield hits 2.977 percent, highest in 10-1/2 years in late US trading.
- US 5-year treasury yield reaches 3.098 percent, highest in a decade, extends earlier rise as fed hints at further rate hikes.
- US 3-year treasury note hit the highest yield levels since it was reintroduced 10 years ago.