US Short Treasury Yields Hit New Cycle Highs as Market Anticipates FOMC Rate Hike

Short-dated US Treasury yields opened Monday at new highs for the cycle, with the benchmark two-year treasury yield rising above 4.22%. This increase, a gain of almost five basis points from last Thursday's close, reflects market expectations of a Federal Open Market Committee (FOMC) rate hike as early as late July, with one fully priced for the mid-September meeting.