US borrowing costs surged in March as investors sold Treasures amid inflation
concerns tied to the Iran war. The two-year yield rose about 50 basis points to
3.9%, while the 10-year climbed 44 basis points to 4.38%, the biggest increases
since October 2024. A $69 billion two-year auction saw weak demand, with primary
dealers taking a larger share. Markets now price no Federal Reserve rate cuts
until 2027, with some probability of hikes this year, reflecting concerns that
Elevated energy prices may sustain inflation.
