<ul><li>2-year Treasury yields +2.2 bps to 3.968%</li><li>5-year Treasury yields +1.6 bps to 3.709%</li><li>10-year Treasury yields +2.9 bps to 3.518%</li><li>30-year Treasury yields +3.8 bps to 3.543%</li></ul><p style=““ class=“text-align-justify“>It looks like the rates market is still siding with a more hawkish Fed ahead of the main event tomorrow. Yields are continuing to push higher on the week with 2-year Treasury yields hitting 3.97% – its highest since November 2007. The dollar didn’t take much cue from bonds yesterday but is looking steadier so far today with USD/JPY also up 0.3% to 143.65 at the moment.</p><p style=““ class=“text-align-justify“>The Fed remains the driving force for the next key move but with markets already inching towards 4% rates, it will take some added convincing from Powell & co. to drive another push higher surely – same might be said for the dollar as well.</p>

This article was written by Justin Low at forexlive.com.