: Treasury yields extend plunge, with 2-year rate heading for biggest three-day decline since 1987

Treasury yields continued to plunge further Monday morning, sending the policy-sensitive 2-year rate heading toward its biggest three-day drop since October 1987. The 2-year rate fell 45 basis points to 4.138% amid a flight away from risk sparked by the collapse of California’s Silicon Valley Bank and weekend closure of Signature Bank in New York. The rate is heading for its biggest one-day drop since September 2008. Meanwhile, the 10-year rate fell 23 basis points to 3.476%, heading for its largest three-day decline since November 2008. Fed funds futures traders now see a 37% chance of no rate hike by the Federal Reserve on March 22.

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