economy
2-year Treasury yield surges after poor U.S. bond auction
The 10-year Treasury yield also rose on Tuesday as renewed volatility in oil markets and continued attacks in the Middle East kept investors on edge.
TL;DR
- The 2-year Treasury yield rose over 9 basis points to 3.925% after a $69 billion auction showed weak demand.
- The bid-to-cover ratio for the 2-year auction was 2.44, the lowest since May 2024.
- The 10-year Treasury yield climbed over 5 basis points to 4.392%, and the 30-year yield rose over 4 basis points to 4.956%.
- Rising yields are linked to renewed inflation concerns, potential higher oil prices due to Middle East tensions, and volatility in oil markets.
- Conflicting reports about U.S.-Iran conversations have increased market uncertainty, impacting both energy and rates markets.