Bonds Wrap: Losses in 5-yr note & longer tenors, short end little changed
Fed Powell said that more rate hikes will be needed and focused on disinflation, saying that the process has barely started and has a long way to go. He added that getting inflation down to 2.0% will take into next year. He also said that it will be a couple years before the central bank nears the end of balance sheet reduction, but a specific target has not been set.
Ugly Treasury 3-yr note auction
Yields
2-yr UNCH at 4.46%
3-yr -1 bp to 4.12%
5-yr +3 bps to 3.84%
10-yr +4 bps to 3.67%
30-yr +3 bps to 3.71%