US Treasury rates are up, with 10-year ones climbing more than 7 basis points to 1.574%. Interest rates on 30-year Treasuries rose by 6.5 basis points, to 1.954%. The focus of the operators is above all on the shorter-term rates, which are more expensive for the next monetary policy moves of the Fed.
Pay particular attention to the two-year US bond rates which, at 0.796%, are positioned at the highest values since March 2020, or since the alarm of the Covid-19 pandemic sounded all over the world.
The explanation lies in the expectations of the markets and the Fed itself on the beginning of a cycle of rate hikes starting this year.
The two-year rate jump is noteworthy, considering that the low of 2021 was reached around 0.105%.
From the Jerome Powell Fed dot plot published in December, it emerged that the US central bank plans to raise rates up to three times over the course of 2022, to 1%, from the current range of zero to 0.25. %.
Five-year Treasury rates are up 1.336%, the highest since last November, when they climbed to 1.378%.