Treasury Yields of 2 Years & 3 Years Spike toward 5%, but 10-Year Holds at 5%, Yield Curve Bulges: Some Thoughts on What’s Brewing

The 3-year Treasury yield spiked by another 14 basis points this week – the week of the Fed’s hawkish rate hike – and by 56 basis points since Warsh’s financial-conditions-are-not-restrictive speech in Jackson Hole on August 28. Since the end of February, it has soared by 144 basis points.