Treasury prices erased gains and fell into losses, pushing yields higher after Fed’s William Dudley expressed confidence about inflation rising to 2% and cheered labor market strength. At the time of writing, benchmark 10-yr treasury yield was up 1.4 basis points (bps) at 1.766%. The yield was down almost 2 bps earlier today on account of sell-off in oil and equities. The 30-yr yield was up 1.6 bps as well. The 2-yr treasury yield, which mimics short-term rate hike bets, was up 1.2 bps at 0.746%. Dudley’s take on inflation and labor market is slightly hawkish, although it is hardly surprising. Still, his comments managed to push yields slightly higher, but fresh drop in oil could once again play a spoil sport. For more information, read our latest forex news.