The U.S. two-year Treasury yield reached 4.744% on Friday, its highest intraday level since July 2024, when it touched 4.775%. The move followed Wednesday’s Federal Reserve rate increase and comments from Chair Kevin Warsh that investors interpreted as leaving further hikes possible. CME FedWatch data showed a 58% probability of another increase in October, up from 55% on Thursday. The 10-year yield was recently 4.998%, after briefly exceeding 5% on Wednesday for the first time since 2007. The yield curve continued to flatten after the Fed decision, while oil above $105 a barrel, disrupted shipping through the Strait of Hormuz, the Iran conflict and hotter-than-expected August inflation increased concerns about renewed price pressures. Higher Treasury yields can tighten financial conditions and increase volatility in rate-sensitive assets, including cryptocurrencies.