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10-year Treasury yield rises above 2.6% after Brainard speech

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As investors considered remarks by Federal Reserve Governor Lael brainard, the 10-year Treasury rose to new levels Wednesday. They also awaited more information about the central bank’s tightening.

As it makes a dramatic two-day leap, the benchmark rate trades at 2.67%. This is close to its March 2019 high. Monday’s close of the 10-year was at 2.4%.

The 10-year traded at 2.541% on Wednesday, putting it well ahead of its 2-year counterpart. A so-called yield curve Inversion occurred when the 2-year traded above its 10-year counterpart.

The yield is based on 5-year U.S. government bondThe rate was lowered by 5 basis points, to 2.748%. 30-year Treasury yieldThe rate of increase was 7 basis points, to 2.653%. Yields change in the opposite direction to prices. 1 basis points is equivalent to 0.01%.

Brainard said central banks must act quickly in order to lower inflation.

“Inflation is too high, and there are upside risks to it,” she said in prepared remarks Tuesday. “The Committee will consider taking stronger action when indicators of inflation or inflation expectations are indicated.”

Investors also await minutes of the last Fed meeting on Wednesday afternoon for clues about the central bank’s plans for tightening its monetary policy.

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Vicky McKeever from CNBC was a contributor to this report.

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