Two-year Treasury yield at three-month high after Fed sees more 2023 rate hikes

The 2-year Treasury yield carved out another three-month high on Wednesday after Federal Reserve officials indicated more rate hikes are likely on the way for later this year.

What happened

What drove markets

Projections released on Wednesday showed that the median estimate of policy makers for the fed funds rate by year-end is 5.6%, exceeding most expectations. Fed officials lifted their expectations for the so-called 2023 median dot in their forecasts, even though they left their main interest-rate target…