Treasury yields headed for their highest levels in well over a decade on Tuesday, as traders positioned for a higher-for-longer theme in rates following a batch of stronger-than-expected data last week. The policy-sensitive 2-year yield briefly touched 5.101% in morning trading before slipping to 5.088%. It was still on its way to the highest 3 p.m. Eastern time level since July 25, 2006, when it ended at 5.114%. The 10-year rate rose 2.3 basis points to 4.341%, heading for the highest closing level since Nov. 6, 2007. The moves come just one day before the Federal Reserve is expected to announce its next policy decision, with a 99% likelihood of no action seen on Wednesday. However, policy makers are set to release fresh interest-rate forecasts for 2024 and subsequent years.
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