The 10-year Treasury yield hit a new multiyear high Tuesday as investors considered the state of the economy and awaited key data from the labor market that could inform Federal Reserve monetary policy.
At 7:01 a.m. ET, the yield on the 10-year Treasury was up nearly 3 basis point at 4.71%, hitting its highest level since Oct. 15, 2007, when it reached 4.719%. The 2-year Treasury yield was up 1 basis point at 5.123%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
U.S. lawmakers were able to avoid a government shutdown as they passed a last-minute spending bill on Saturday night. That has bought them time to finish the necessary government funding legislation. A shutdown could have negatively affected the U.S.’ credit rating as well as the country’s economy.
Investors also weighed the Fed’s next interest rates moves. Central bank officials have hinted at another rate increase and rates staying elevated for longer since their September meeting.
But uncertainty remains about when the rate increase may be implemented. Two central bank policy meetings remain this year, Oct. 31-Nov. 1 and Dec. 12-13.
Investors are therefore closely watching comments from Fed speakers and economic data expected this week.
August’s Job Openings and Labor Turnover Survey is due Tuesday and economists surveyed by Dow Jones are expecting it to reflect 8.8 million job openings. Other key data releases this week include September’s jobs report on Friday.
