(Bloomberg) — Treasury yields rose for a second session and five-year interest rates hit their highest level since before the pandemic swept the United States, amid growing conviction that the Federal Reserve will raise rates at least three times starting in May.
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The five-year Treasury yield rose 3.8 basis points to 1.392%, the highest level since February 20, 2020, while the 30-year yield rose toward the 200-day moving average.
Yields are rising along the curve for a second day in a row, after Monday’s massive sell-off lifted the 10-year yield by nearly 12 basis points, its worst start to the year since 2009. The instrument is yielding in two years above 0.80% for the first time since March 2020.
That move swept markets from Australia to the UK, where bond trading resumed after Monday’s holiday. Australian 10-year bond yields rose 15 basis points to 1.82%, the highest since November 26. UK yields for the same term rose 10 basis points to 1.07%, the highest since November 3.
Highest 5-Year US Return Since February 2020 in a Bond Sale
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