Uh Oh: 2-Year Treasury Yield Marks Biggest 3-Day Decline Sine 1987 Stock Crash

NEW YORK, NEW YORK - NOVEMBER 17: Traders work on the floor of the New York Stock Exchange during morning trading on November 17, 2022 in New York City. Stocks are expected to fall as the stock market opened with interest rates rising as Federal Reserve officials signal more interest rate hikes to continue to slow down inflation. (Photo by Michael M. Santiago/Getty Images)
  • Investors swarmed into U.S. government bonds Monday after the collapse of Silicon Valley Bank and subsequent government backstop of the banking system. The rush sent Treasury yields tumbling.
  • The yield on the 2-year Treasury was last trading at 4.005%, down nearly 59 basis points. (1 basis point equals 0.01%. Prices move inversely to yields.)
  • The yield has fallen around 100 basis points, or a full percentage point, since Wednesday, marking the largest three-day decline since Oct. 22, 1987, when the yield fell 117 basis points.