The policy-sensitive 2-year rate jumped 25 basis points to 4.27% after February’s CPI report showed little signs of progress on inflation. Treasury yields were higher across the board, led by the short- to intermediate- parts of the curve. The moves came a day after contagion fears stemming from the bank sector left the 2-year rate with its biggest drop since Oct. 20, 1987. Meanwhile, fed funds futures traders factored in a 91.5% chance of a 25 basis point rate hike by the Federal Reserve next week.
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