2-Year Note futures fell for a 4th session as yields rose.

2-Year Note futures traded lower for a fourth consecutive session, approaching contract closing lows near 102'27. Ongoing tensions and escalation in the Middle East have driven WTI Crude Oil futures into the mid-80s, rekindling inflation concerns and shifting market expectations for rate cuts. As a result, interest rates and Treasury yields moved higher across the board. The 2-Year Treasury yield rose 4.5 bps to 4.26%, reaching its highest level since February 2021. The yield curve also flattened, with short-term yields rising faster than the back end. Dan Deming of KKM Financial breaks down the primary drivers behind the move and the changing inflation outlook.