US 2-year yields are signalling higher rates for longer.
The notes pay 5.194%, up 9.4 bps today and just below the Sept 21 intraday high of 5.202%. The rates market is hesitant to price in more Fed hikes but is growing more confident that rates will stay higher for longer due to a resilient economy.
In recent history, short-dated yields this high are extremely rare. They rose to 5.29% in June 2006 but only stayed above 5.19% for days. The last time with sustained yields this high was in during the peak of the dot-com boom.
US 2s quarterly