UST2Y 2-Year Treasury Note Yield Weekly Chart at 9-Year Highs

The 2-year yield continues moving higher for the last six years. The Federal Reserve continues its gradual rate hike path so the short end continues higher. The higher the 2-year yield goes, the increased likelihood of a yield curve inversion (the 2-year yield moves above the 10-year yield) that typically brings on a recession.

The Federal Reserve raises its key rate by 25 basis points (0.25%) yesterday. Before the announcement, the 2-year yield pegged the 1.85% level not seen since September 2008 when the financial crisis was sending global markets into the gutter.

After the Fed hike yesterday, the 2-year yield collapsed to 1.77%, an 8-basis point retreat (notes and bonds are sold off with prices lower and yields higher). The 2-year yield recovers overnight playing in the 1.80%-1.82% area. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.