The tug-of-war was played out on the short end of the Treasury yield curve with the two-year note—the maturity most sensitive to expectations of future Fed policy—gyrating the most. The two-year Treasury ended Friday at 0.802%, up from 0.749% the previous week but down from a peak of 0.901% earlier that session prior to Dudley's comments. Still, the note's yield is up sharply from a low of 0.496% on March 15, at the height of fears about the impact of Japan's earthquake and tsunami, which spurred a flight to quality that pushed up prices and drove down yields in the Treasury market.