The policy-sensitive 2-year Treasury traded up more than 4.2%, hitting a 15-year high of 4.266% earlier in the session. It last traded up 12 basis points at 4.246%. Meanwhile, the trailing 10-year yield traded 9 basis points higher at 3.801% and near levels not seen since 2011. Yields and prices move in opposite directions. One basis unit equals 0.01%. September PMI data is due out on Friday, giving markets a preliminary picture of the economic state of the manufacturing and services industries for the month. PMI data is used as a key indicator of inflation and recession concerns, as it reflects whether industries are expanding or contracting, as well as supply and demand. Analysts expect the services sector to pick up after a sharp contraction in August. Meanwhile, growth in manufacturing is expected to ease, after slowing to near 2020 levels last month. Markets are also digesting the Federal Reserve’s 75 basis point hike in interest rates announced on Wednesday as the central bank tries to curb inflation. Federal Reserve Chairman Jerome Powell is due to give a speech with further information on Friday.
