10-Year U.S. Treasury Yield Rises To 1.83%, A Two-Year High

The 10-year U.S. Treasury yield has risen to its highest level in two years, topping 1.83%.

The yield on the benchmark 10-year Treasury note soared five basis points to 1.8305%. The yield on the 30-year Treasury bond climbed three basis points to 2.1492%. Meanwhile, the two-year rate topped 1% for the first time in two years, hitting 1.0364%.

Yields move inversely to prices and one basis point is equal to 0.01%.

The move indicates that investors are preparing for the possibility of more aggressive tightening by the U.S. Federal Reserve (Fed).

Last week, Fed Chair Jerome Powell told the U.S. Senate that he expected to see a series of interest rate increases this year, along with a pullback in other pandemic economic support measures.

Fed officials have gone into a no-comment “blackout” period ahead of the next central bank meeting on January 25 and 26.

In terms of data releases due out today (January 18), the January National Association of Home Builders housing market index is expected. And auctions are scheduled to be held for $60 billion of 13-week bills and $51 billion of 26-week bills.