Term Treasury yields have waffled more or less sideways since mid-January amid a broad recovery in financial conditions. The yield on the two-year Treasury Note was near 2.55% as this forecast was being prepared, and the 10-year yield was near 2.75%. Both yields are just slightly above their recent averages. The 10-year yield remains approximately 50 basis points lower than at its recent peak in early November, as investors marked down their expectations for Fed interest-rate policy. Term premia also eased, as investors preferred the safety of Treasuries.
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