Two-year Treasury yield hits 5-1/2 year high of 1%

FXStreet (Mumbai) – The two-year treasury yield in the US rose to 1.021%; its highest since May 2010 after the Fed raised rates by 25bps as expected.

The yield currently trades around 1%. The yield on the benchmark 10-yr treasury yield has trimmed gains to trade largely unchanged on the day at 2.27%.

The Fed made clear that the rate hike was a tentative beginning to a “gradual” tightening cycle, and shall monitor inflation expectations and incoming data while deciding on further rate hikes.

However, the median projected target interest rate for 2016 remained 1.375%, implying four quarter-point rate hikes next year.

The two-year treasury yield in the US rose to 1.021%; its highest since May 2010 after the Fed raised rates by 25bps as expected.

(Market News Provided by FXstreet)