Support for a quarter-point rate increase fueled a broad selloff across the Treasury curve, underscoring how sensitive bond investors remain to hawkish Federal Reserve signals.
The U.S. 10-year Treasury yield rose to 4.737% after Logan and Hammack backed a 25bp hike (0.25 percentage-point interest-rate increase), triggering a broad selloff across the Treasury curve. The move points to a bond market that remains highly reactive to hawkish signals from Federal Reserve officials, as expectations of tighter policy typically push yields higher and bond prices lower.