The two-year Treasury yield reached high of 3.96% before receding to 3.79% which is a major move for the bond market. The two-year yield tends to follow expectations for what the Federal Reserve will do with short-term interest rates.
The 10-year U.S. Treasury yield held at 4.26% where it was late Wednesday but it’s still well above its 3.97% level from before the war with Iran started.
Higher Treasury yields have already sent rates for mortgages and other kinds of loans upward and a report on Thursday showed sales of new U.S. homes unexpectedly weakened in January.