Just like the 3 month bond yield, the 2 Year is also short term and mainly determined by the fed policy. 5.5 Maybe the next stop for the short 2 Year bond yields where the market will pause, consolidate and then breakout/reverse. The fed may also maintain the rates at around 5.5.
Comment:
The market tagged the highlighted resistance and was rejected. That was a sign that the short term bills would start falling, as the yield of the long term Notes and Bonds starts to rise.
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