2-Year Treasury Yield Climbs on Fed Tightening Expectations

The front end of the yield curve continues to signal more Federal Reserve tightening, with the 2-year Treasury yield rising 5 basis points to 4.83%. This rate is crucial as it influences cash yields, mortgage pricing, and the flattest part of the yield curve.

Meanwhile, a major ETF issuer, WisdomTree, has chosen the Texas Stock Exchange over NYSE and Nasdaq for one of its ETFs, indicating that listing fees and venue share are becoming significant factors in the fund industry.

The odds of a Fed rate hike in October have dropped sharply to around 25% from 70%, following comments from Fed officials. This shift highlights the challenges of moving markets away from focusing solely on Fed signals.

In other market news, the Brazil ETF ($EWZ) saw a record single-day inflow of $700 million, driven by anticipation of a political shift in the country. This surge marks the largest one-day flow in the ETF's 25-year history.