The 10-year yield has reached a new 3-year high after a surge this week due to the Fed's tightening plan.

On Friday, the 10-year rate reached a new 3-year high, with investors still processing the minutes from the previous Fed meeting.

On Friday, the benchmark yield traded above 2.7%, reaching its highest level since March 2019, following recent comments from the Fed. The 2-year yield rose by 5 basis points to 2.516%.

The yield on the advanced increased by 6 basis points to 2.746%, while the 5-year rate also increased by 6 basis points to approximately 2.75%. Yields move inversely with prices, and 1 basis point is equivalent to 0.01%.

John Lynch, chief investment officer at Comerica Wealth Management, stated that the steeper curve is clearly responding to the Fed and inflation. He believes that when rates rise, it is a better investment opportunity for cyclical recovery, as an alternative to expensive growth stocks. Lynch emphasized that investors are carefully analyzing the fundamentals.

The 10-year rally occurred following the release of Fed minutes on Wednesday, which revealed that the central bank intends to reduce its balance sheet by $95 billion per month and may increase interest rates by 50 basis points.

The aggressive tightening of monetary policy and rising inflation have caused yields to invert, prompting investors to sell off shorter-dated Treasury bonds and buy long-dated government debt, indicating concerns about the near-term health of the economy and the possibility of a recession.

As the U.S. Congress voted to revoke Russia's trade status and ban oil and gas imports, investors continue to monitor developments in Ukraine. This decision came after reports of rape and torture against civilians by Vladimir Putin's forces, which drew strong condemnation from G-7 members. Russia was subsequently removed from the U.N. Human Rights Council.

— bizfocushub.com staff contributed to this market report.