US 2-year treasury yield hovers at highest since April

The yield on the US 2-year Treasury note hovers around 1%; the highest level since April, although the bullish momentum appears to have stalled.

The yield had dropped to a low of 0.808% last week before jumping to 0.931%, extending gains to 1.015% this week.

Expectations that Trump’s fiscal stimulus would lead to a steeper Fed rate hike path pushed the treasury yields higher.

However, there are signs that the bullish momentum have run out steam as the 2-year yield ended largely unchanged yesterday despite the strong US retail sales release.