The two-year Treasury note yield rose to its highest level since 2008 on Tuesday after a top Federal Reserve official said he expects U.S. inflation to rise.
As of 1:59 p.m. ET, the two-year yield traded at 2.394 percent and hit a high of 2.402 percent. On Sept. 8, 2008, the two-year hit a high of 2.542 percent.
The yield reached its near-decade high after San Francisco Fed President John Williams said Tuesday he expects U.S. inflation to rise to the U.S. central bank's 2 percent goal this year and stay at or above that goal for "another couple of years."
To keep the economy from overheating, he said, the Fed needs to keep raising interest rates.