10-Year Treasury Yield Hits Highest Level Since November

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U.S. Treasury yields on Tuesday reached levels not seen in three months as traders continued to fret over the prospects of higher Federal Reserve rates.

At 11:36 a.m. ET, the yield on the 10-year Treasury was up by 8 basis points at 3.91%. The 2-year Treasury was last trading at 4.7% after rising by more than 7 basis points. Yields and prices have an inverted relationship and one basis point equals 0.01%.

The benchmark rate hit its highest level since Nov. 10, briefly trading at 3.95%. The 2-year yield, meanwhile, rose to 4.725% before easing slightly from that high.

Recent comments from Fed officials have stoked fears of even tighter monetary policy going forward. Last week, St. Louis Fed President James Bullard said he advocated for a 50 basis point increase at the Jan. 31-Feb. 1 meeting. Back then, the central bank hiked rates by 25 basis points.

As of Tuesday, traders saw a 76% chance of the Fed raising rates by 50 basis points in March, according to the CME Group's FedWatch tool.

Minutes from the Federal Reserve's latest meeting on Jan. 31 and Feb 1. are expected on Wednesday. Investors will be scanning them for clues about the central bank's future policy path.

On the data front, U.S. existing home sales fell 0.7% to a seasonally adjusted 4 million units in January, reaching their lowest level in more than 12 years. They also declined for a 12th consecutive month.

However, "Home sales are bottoming out," said National Association of Realtors chief economist Lawrence Yun. "Prices vary depending on a market's affordability, with lower-priced regions witnessing modest growth and more expensive regions experiencing declines."

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