Short-term Treasury Yields Spike To 2-month High After Fed Minutes Hint At June Rate Hike

Short-term Treasury yields spiked to their highest level in over two months Wednesday after the minutes from the Federal Reserve's April meeting showed most Fed policy makers were ready to lift interest rates in June if the economy improved. Short-term yields are most sensitive to changes in the fed-funds rate and tend to spike when rate-hike expectations increase. Treasury yields rise when prices fall and vice versa. After the release, the two-year Treasury yield gained 5.3 basis points to 0.876%, its highest level since March 15, according to Tradeweb. One basis point is equal to one-hundredth of a percentage point. The yield on the 10-year U.S. Treasury note, the Treasury market's benchmark, gained 6.9 basis points to 1.826%, its highest level since May 2. And the yield on the 30-year bond,known as the long bond, gained 5.6 basis points to 2.642%, its highest level since May 3.

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