Ten-Year Treasury Rises to 2010 Levels on Hawkish Fed

The 10-year Treasury yield rises to levels not seen since early 2010 after the Fed projected the fed funds rate peaking at a surprisingly high 4.6% next year. “The 10 year TSY yield hit 3.70% in frantic trading, suggesting the bond market may be nearing a peak selloff as yields climb rapidly near the Fed’s intended Fed Funds target,” Spartan’s Peter Cardillo says in a note. The yield reaches 3.688% as markets adjust to the notion that monetary tightening is unlikely to tame inflation without causing a recession, as Chairman Powell indicated.