The yield on the 2-year Treasury note fell sharply on Friday as the shutdown of Silicon Valley Bank sparked a flight to safer assets such as government bonds.
The yield shed at least 46 basis points over a two-day period, a sudden decline not seen since September 2008, when the markets were in the throes of the global financial crisis. Perhaps by no coincidence, the flight to bond safety this week was caused by the biggest bank failure since the financial crisis.
Earlier in the week, the yield on the 2-year Treasury note traded above the key 5% level. It last traded 32 basis points lower at 4.58%.