2Y U.S. Treasury yields show three more rate hikes; bulls bet pricing is excessive: snapping up short-dated bonds.

ZHITONG FINANCE APP has learned that investors in the U.S. Treasury market are shifting their focus toward holding shorter-dated government bondsa trade betting that the Federal Reserve will ultimately win its battle against inflation. In the days since the Fed raised rates last week for the first time since 2023, the two-year Treasury yield has surged to a multi-year high of about 4.75%, the latest leg of a selloff in the underlying bonds. Futures market pricing implies another 80 basis points of monetary tightening over the next year, suggesting that Chairman Kevin Warsh's vow to go all-in on the fight against inflation is winning traders' trust.