The post U.S. Short-Term Bond Yields Jump 10 BPS as Fed Rate Hike Bets Return appeared on BitcoinEthereumNews.com.

U.S. short-term Treasury yields surged 10 basis points in a single session as traders rapidly repriced the probability of a Federal Reserve rate hike, reversing months of expectations for policy easing and sending fresh shockwaves through risk assets including crypto. The 2-year Treasury yield, the maturity most sensitive to Fed policy expectations, climbed to approximately 3.84% as of March 26, 2026, according to financial data reported by ChainCatcher. The move caps a brutal repricing across the short end of the curve: the 2-year yield has risen roughly 53 basis points since early March alone. U.S. Short-Term Bond Yields +10 bps Single-session rise as Fed rate-hike expectations revived Rate futures pricing now implies approximately 15 basis points of cumulative rate hikes expected by year-end 2026. CME FedWatch data shows traders assigning roughly 40% probability to at least one rate hike before December, a stark reversal from the two or three rate cuts that markets were pricing just weeks ago. The 3-year yield reached 3.88%, the 5-year hit 3.96%, and the 10-year climbed to 4.33%, all based on Federal Reserve H.15 data for March 26. The yield curve has uninverted in March as short-to-medium term maturities in the 1-to-5 year range rose most sharply. Wolf Street captured the speed of the shift: “The 2-year yield flipped from fully pricing in 1 rate cut to fully pricing in 1 rate hike in the span of three weeks.” That kind of repricing typically takes months, not days. Powell’s “Plateaued” Inflation Comment Lit the Fuse The catalyst behind the bond rout traces directly to the March 18-19 FOMC meeting and Fed Chair Jerome Powell’s subsequent comments. Powell stated that inflation progress had “plateaued,” signaling the central bank is prepared to remain restrictive for as long as necessary. The data backs up the hawkish tone. Core…

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Filed under: News - @ March 26, 2026 8:30 pm