US 3-month Treasury yield jumped 10 bps on hawkish Fed comments

The short duration and the long duration treasury yields jumped this Tuesday morning after the comments from the Fed officials boosted March Fed rate hike bets to 62%.

The three-month treasury yield jumped 10 basis points to 0.6%. The 10-year yield added 7 basis points and now trades around 2.424%. The 2-year yield jumped 9 basis points to 1.304%.

The two-year yield currently sits at the highest level since Dec 15. New York Fed President William Dudley said that the case for tightening monetary policy "has become a lot more compelling" since Trump's election.

John Williams, president of the San Francisco Fed and a non-voting member, said there is no need to delay a rate hike with the economy at full employment and inflation headed higher.