Treasury yields rise to near two-week highs

Treasury prices dropped on Tuesday, pushing yields higher to near two-week highs on falling Brexit bets.

The yield on the benchmark 10-yr Treasury note rose to 1.711%, the highest level since June 8. The two-year yield, which represents short-term interest rate expectations, rose to 0.771%.

Tuesday’s Brexit polls suggested the UK is rejecting the idea of exit from the European Union. Consequently, safe haven demand for treasuries dropped. Other safe haven assets like gold dropped as well.

Over the past few weeks, safe haven assets – treasuries, gold and yen – have dropped each time polls showed ‘remain’ vote in lead.