2-year Treasury yield goes above 4% ahead of Fed’s policy announcement; 3-year rate rises to 3.99%

The policy-sensitive 2-year Treasury rate edged above 4% ahead of the Federal Reserve’s policy update at 2 p.m. Eastern time, and is poised to end the New York session at another 15-year high. The last time the U.S. 2-year Treasury yield TMUBMUSD02Y, 3.980% closed at 4% or higher was on Oct. 16, 2007. Meanwhile, the 3-year rate TMUBMUSD03Y, 3.956% was not far behind, at 3.99%. Investors are highly focused on policy makers’ projections for where the fed funds rate could ultimately end up, following a widely expected rate hike on Wednesday.