1-month, 2-year Treasury yields drop on debt-ceiling, banking developments

Bond Report

Last Updated: April 26, 2023 at 10:25 a.m. ET First Published: April 26, 2023 at 6:19 a.m. ET

Most Treasury yields were little changed to slightly lower Wednesday morning, though short-term rates remained volatile on U.S. debt-ceiling issues and tensions in the banking sector.

What’s happening

What’s driving markets

Revived anxiety over the U.S. regional banking sector this week, coupled with possible progress on the debt ceiling issue in Congress, were the main drivers nudging 1-month BX:TMUBMUSD01M and 2-year yields lower Wednesday morning.Traders were eyeing a possible vote by the U.S. House soon…