UPDATE: Treasury yields jump as traders position for higher rates
By Mark DeCambre, MarketWatch
10- and 30-year Treasury yields are up around 7 basis points
U.S. Treasury prices retreated further on Wednesday, driving yields higher, amid a modest increase in appetite for assets perceived as risky, like stocks, and after a speech by Federal Reserve Chairwoman Janet Yellen set the table for one additional rate increase this year.
The markets are pricing in a more than 80% chance of another rate increase in 2017, compared with about 38% a month ago. according to CME Group data (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html).
What are Treasury yields doing?
The benchmark 10-year Treasury yield rose 7.2 basis point to 2.301%, compared with 2.229% late Tuesday in New York (http://www.marketwatch.com/story/treasury-yields-stabilize-as-traders-brace-for-data-fed-speakers-2017-09-26). The 2-year Treasury note yield, which is more sensitive to shifts in rate expectations, climbed 3.4 basis points to 1.474%. The 30-year bond yield added 6.8 basis points to 2.839%.
What did Yellen say on Tuesday?
In a speech in Cleveland, the Fed boss sai (http://www.marketwatch.com/story/yellen-says-fed-should-be-wary-of-raising-rates-too-gradually-2017-09-26)d "it would be imprudent to keep monetary policy on hold until inflation is back to 2%."