Treasury yields are plunging
- 2-year -5.3 bps @ 1.140%
- 3-year -7.2 bps @ 1.404%
- 5-year -8.6 bps @ 1.811%
- 7-year -8.5 bps @ 2.116%
- 10-year -8.2 bps @ 2.314%
- 30-year -7.3 bps @ 2.916%
Tuesday's bid has down to their lowest levels since at least the beginning of December. Yields rallied sharply from election night until the middle of December amid expectations President-elect Donald Trump's protectionist trade policies and plans for massive infrastructure spending would spark a return of inflation in the United States. The benchmark 10-year yield put in a high 2.64% the day after the Fed hiked its benchmark interest rate for just the second time since the financial crisis and said it expects three rate hikes in 2017.