Less than 48 hours ago, you could get 5% for buying a 2-year Treasury note for 2 years. That was an invitation for many to step away from the volatility of financial markets for a couple years and clip coupons. It was also a reflection of the idea that you could get around the same amount in short-term t-bills because the Fed was poised to hike to 5.50-5.75%.
Now the market is pricing the Fed's terminal top at 5.26% and 2-year yields are down to 2.63% in a 26 bps drop today.
Needless to say, the attractiveness of buying/holding US dollars has taken a hit.
US 2 year yield daily
