US 2-year and 5-year Treasury yields both rose more than 4 basis points to their highest level in more than a year on Wednesday, and there was no clear cause, indicating that worsening market sentiment may be the driving force behind it. The 2-year US Treasury yield rose by more than 4.30%, the 3-year term to 4.34%, and the 5-year term to 4.40%, all for the first time since February 2025; the 10-year US Treasury yield rose by more than 4.65%, which is only 2 basis points short of the high it hit during the year on May 19. The market's implicit expectations of the Fed's interest rate hike continue to heat up. The July overnight index swap contract has absorbed the tightening of about 8 basis points, which means that the possibility of raising interest rates by 25 basis points at a time is about one-third; the 2027 contract shows that by the middle of the year, the possibility of raising interest rates twice has reached 100%, and there is also some possibility of a third rate hike.

US 2-year and 5-year Treasury yields both rose more than 4 basis points to their highest level in more than a year on Wednesday, and there was no clear cause, indicating that worsening market sentiment may be the driving force behind it. The 2-year US Treasury yield rose by more than 4.30%, the 3-year term to 4.34%, and the 5-year term to 4.40%, all for the first time since February 2025; the 10-year US Treasury yield rose by more than 4.65%, which is only 2 basis points short of the high it hit during the year on May 19. The market's implicit expectations of the Fed's interest rate hike continue to heat up. The July overnight index swap contract has absorbed the tightening of about 8 basis points, which means that the possibility of raising interest rates by 25 basis points at a time is about one-third; the 2027 contract shows that by the middle of the year, the possibility of raising interest rates twice has reached 100%, and there is also some possibility of a third rate hike.