Treasury two-year notes fell for a second day, pushing the yield to the highest level in more than three years, after the Federal Reserve raised its estimate of the target rate for overnight loans between banks for 2015.
Emerging-market currencies had their worst selloff in five years yesterday. The U.S. 10-year yield fell three basis points, or 0.03 percentage point, to 2.75% as we seem to be experiencing a “global flight to quality.”
U.S. stocks slumped, sending the Dow Jones Industrial Average toward its biggest drop since September, and Treasuries rose after a gauge of China’s manufacturing shrank. Emerging-markets stocks fell while gold and natural gas rallied.