Several Federal Reserve officials on Tuesday signalled the US central bank was committed to its aggressive fight against soaring prices, prompting a jump in short-dated Treasury yields as investors priced in more interest rate rises.
The two-year yield, which moves with interest rate expectations, jumped by 0.19 percentage points to 3.06 per cent, its biggest daily move since mid-June. The three-year yield rose by 0.22 percentage points, also its largest move since mid-June, to breach 3 per cent.
San Francisco Fed president Mary Daly said in an interview on LinkedIn that the central bank was “nowhere near” done with its fight to cool inflation, which continues to run at 40-year highs.