The policy-sensitive 2-year Treasury note yield is on track to set another multiyear milestone on Tuesday, after February’s CPI data showed inflation remains stubborn. The 2-year yield jumped 35 basis points to 4.368% and is on its way to its largest one-day gain since June 5, 2009, when it rose by 35.5 basis points. If the yield’s advance exceeds that level by the end of New York trading, the jump will rank as the biggest since Sept. 19, 2008, when it rose by 52.9 basis points. The aggressive broad-based selloff which pushed Treasury yields higher across the curve on Tuesday comes just one day after contagion risks from the banking sector had pushed the 2-year rate to its biggest decline since October 20, 1987.
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