Two-Year Yields Hit 17-Month High on Oil Surge, Fed Fears

Two-Year Yields Hit 17-Month High on Oil Surge, Fed Fears

Two-year US Treasury yields have hit a 17-month high on rising oil prices, sparking concerns about inflation and the global economy. The Fed is worried about the impact of rising interest rates on the economy. According to Fed funds futures, there is a 32% chance of a rate hike next week. The five-year TIPS breakevens have risen to 2.31% from 2.21% on June 24. The Treasury sees soft demand for the $13 billion 20-year bonds sale. The rising interest rates are a concern for the global economy, with many experts warning of a potential recession.