Treasury Market Signals Higher Rates as Warsh Takes the Helm

Treasury yields climbed across the curve as traders priced in at least one 25bp rate hike, with the 2-year near 4.15%—well above the Fed’s 3.5%–3.75% target—and the 10-year around 4.55%; analysts say the market is pricing in a higher neutral rate to curb inflation, setting up Warsh to face a bond market that may push for tighter policy even as he assumes leadership.