The interest rate market saw 2-Year T-Note futures fall to their lowest levels in eight months on Friday, continuing a three-session slide. Dan Deming of KKM Financial discusses the evolving narrative as the market digests the Federal Reserve's post-meeting guidance alongside strong labor and inflation data. Yields across the curve moved higher, with the 2-year yield reaching 389 bps while the 10-year yield rose 11 bps. Deming also notes the impact of increased Treasury supply and a shifting sentiment that suggests interest rates may remain elevated for longer than previously anticipated.
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