Treasury Yields Rise in February

Treasury yields fall from their morning highs, but manage to close higher for the month as investors increase their interest rates outlook. The 10-year gains 0.387 percentage point in February, to 3.914%, and the two-year rises 0.588 pp to 4.795%, in both cases the largest monthly gain since September. Data and fedspeak are likely to keep moving Treasury markets, but yields may have reached their peak, Spartan’s Peter Cardillo says in a note. “Technically speaking, this is the second time over the past week that a retracement from their highs has occurred,” he says. “We therefore think that yields may have reached a near-term top.”