Two-Year Treasury Yields Could Rise Further Due to Robust Economy, BofA Says -- Market Talk

Dow Jones2026/10/05 09:39

0938 GMT - U.S. two-year Treasury yields are likely to rise further as evidence continues to point to a robust economy which increases prospects of further interest-rate hikes by the Federal Reserve, Bank of America strategists say in a note. "We continue to believe that U.S. rates will remain elevated or rise further until macro data softens or financial conditions tighten. We do not believe either condition has yet been sufficiently met," they say. Still, BofA has "lower conviction" on this view after Friday's weak U.S. jobs data. Two-year Treasury yields fall 1.3 basis points to 4.812%, Tradeweb data show. BofA has a short position on two-year Treasurys, targeting 5.25% with a stop at 4.45%. (jessica.fleetham@wsj.com) (END) Dow Jones Newswires October 05, 2026 05:39 ET (09:39 GMT)

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