Interest rate markets, particularly the short end of the curve, saw heavy selling pressure today. The 2-Year Note futures traded down to a three-week low, currently priced at 104.05. This selling pressure was felt across the entire Treasury curve following the recent Federal Reserve announcement and subsequent press conference. The Fed announced a widely expected quarter-point rate cut and the end of quantitative tightening in December. However, the Chairman stated that no decision has been made for December, and the FOMC holds widely varying views on future policy. This lack of clarity on future policy spurred selling pressure, driving yields higher. The 2-Year yield rose 9 basis points to 359 basis points, reaching a three-week high. The 10-Year saw a yield increase of about 8 basis points to a two-week high. Yields on the 20s and 30s were up 5 to 6 basis points, resulting in a slight flattening of the yield curve on the back end, while the front end saw the most pronounced selling.
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