10-year Treasury yield rises above 2.6% after Brainard speech

The 10-year Treasury rose Wednesday to levels not seen since 2019, as investors weighed remarks from Federal Reserve Governor Lael Brainard and awaited the latest insights into the central bank’s policy tightening.

The benchmark rate traded around 2.67%, near its highest levels in about three years, as it stages a massive two-day jump. The 10-year closed Monday at around 2.4%.

Wednesday’s move put the 10-year well above its 2-year counterpart, which traded at 2.571[ads1]%. The 2-year had recently been trading above the 10-year triggering a so-called yield curve inversion.

The yield on the 5-year US government bond moved to 2.779%, and the 30-year Treasury yield rose to 2.669%. Yields move inversely to prices, and 1 base point is equal to 0.01%.

Brainard, who normally favors easy policy and low rates, said the central bank needs to move quickly to drive down inflation.

“Inflation is much too high and is subject to upside risks,” she said in prepared remarks Tuesday. “The Committee is prepared to take stronger action if indicators of inflation and inflation expectations indicate that such action is warranted.”

Investors are also awaiting the minutes from the previous Fed meeting, due out on Wednesday afternoon, for any clues to the central bank’s plan for tightening monetary policy.

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CNBC’s Vicky McKeever and Samantha Subin contributed to this market report.

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