U.S. Treasury yields rose Tuesday, as traders fret over concerns of rising inflation and tighter monetary policy.
The yield on the benchmark 10-year Treasury note briefly touched 2.91%, reaching levels not seen since late 2018. The benchmark rate later eased from those levels, trading at around 2.89% at 7 a.m. ET.
The yield on the 30-year Treasury bond rose 2 basis points to 2.979%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Concerns around rising inflation and its effect on economic growth has seen investors sell out of bonds over the past couple of months, pushing up yields.
Data released last week showed consumer and producer prices continued to rise in March, fueling investor beliefs that the Federal Reserve could increase the size of its interest rate hikes, in a bid to control this inflation.
St. Louis Fed president James Bullard told CNBC’s Steve Liesman on Monday that “quite a bit has been priced in” in terms of Fed actions.
The Russia-Ukraine war has exacerbated pricing pressures. The World Bank said Monday that it had cut its annual global growth forecast for 2022 from 4.1% to 3.2%.
The Ukrainian military says Russia’s long-expected offensive push into eastern Ukraine has started, with intensified assaults Monday in the Slobozhansky and Donetsk operational districts in the north and east of the country.
March’s building permits and housing starts numbers are set to be released at 8:30 a.m. ET on Tuesday.
