The market is re-thinking the path of the Fed funds rate, along with how high the Fed will hold rates. That’s in light of an extremely strong ADP private payrolls report, showing 497K jobs created in the month.
The 2-year yield is up 13.3 basis points to 5.08%, narrowly above the March high and the highest since 2007. The 2006 high is 5.29%.
US 2-year yield, monthly