The 2-year rate led a rise in yields on Thursday as traders factored in slightly higher chances of rate hikes by the Federal Reserve in June and July. The policy-sensitive rate jumped 12 basis points to 4.46% in morning trading. The 1-year Treasury yield also jumped 8 basis points to 5.2%. The moves came after minutes of the Fed’s May 2-3 meeting, released on Wednesday, showed that some officials were willing to keep hiking rates due to “unacceptably slow” progress on bringing down inflation. Fed funds futures traders now see a 45.8% chance of a rate hike in June and a 19.3% chance of one in July, according to the CME FedWatch Tool.
