5-Year Treasury Yield Highest Since Fed COVID Intervention As Canada 10Y Rises 18.7 BPS (Gold, Bitcoin, Ethereum Rise)

Treasury yields rose a second day, with five-year rates hitting the highest since before the pandemic took hold in the U.S., amid increasing conviction that the Federal Reserve will raise rates at least three times beginning in May.

The five-year Treasury note’s yield climbed as much as 3.8 basis points to 1.392%, the highest since Feb. 20, 2020, while 30-year yields bumped up toward their 200-day moving average.

Yields across the curve are rising for a second straight day, after Monday’s selloff lifted the 10-year note’s yield by nearly 12 basis points in its worst start to a year since 2009. The two-year yield topped 0.80% for the first time since March 2020.

At the 10-year mark, we see Canada’s sovereign notes rising 18.7 basis points.

Also at the 10 year mark, we see the US 1-year breakeven inflation rate (red line) surging.

The US Treasury actives curve and Dollar Swaps curve remain steeply upward sloping.

And on the crypto and gold front, gold surged this morning after tanking in the evening, while Ethereum (blue) is doing quite well along with Bitcoin.

My favorite non-bond, non-alt investment chart. The S&P 500 index charted against The Fed’s M2 Money Stock.

Following my friend Jesse’s habit of posting great French food dishes, here is one from my favorite Parisian eatery, Le Duc de Richelieu. Mmmmmmm.

RIP, Hap Jacobs.