The 10-year Treasury yield reaches a record 3-year peak.

On Thursday, the 10-year Treasury yield reached its highest point since March 2019, as investors processed the Federal Reserve's recent policy tightening decisions.

The 10-year note ended Friday at 2.38%, but the hawkish tone from the Fed saw the benchmark rate rise this week.

The yield settled at 2.68% after briefly touching its highest level since May 2019. Yields move inversely to prices, with 1 basis point equal to 0.01%.

Recent Fed remarks and meeting minutes have caused yields to increase, as investors consider the possibility of the central bank reducing its balance sheet by $95 billion per month and potentially raising rates by 50 basis points.

The Fed's more aggressive tightening approach to combat inflation may harm economic growth and cause a recession, as feared by investors.

These recessionary fears have been reflected in the inversions in Treasury yields, with investors selling out of short-dated government bonds in favor of long-dated debt.

On Thursday, Simon Harvey, head of FX analysis at Monex Europe, stated on CNBC's "Squawk Box Europe" that the Fed's withdrawal from the Treasury market was not excessively aggressive.

At the next Fed meetings, it was anticipated that two consecutive 50-basis-point interest rate increases would be declared.

Harvey stated that the Fed would evaluate whether two rate hikes are sufficient to anchor inflation expectations, allowing it to continue raising interest rates in 25-basis-point increments.

If inflation remains uncontrolled, Harvey proposed a reassessment of a higher terminal rate, which marks the conclusion of Fed rate hikes.