US Treasury yields rose on Tuesday as traders fretted over concerns about rising inflation and tighter monetary policy.
The yield on the benchmark 10-year Treasury note briefly hit 2.91%, reaching levels not seen since late 2018. The benchmark interest rate later eased from these levels, trading at around 2.886% at 6:00 a.m. ET.
The yield on the 30-year Treasury fell less than a basis point to 2.9512%. Yields move inversely with prices and 1 basis point equals 0.01%.
Concerns about rising inflation and its impact on economic growth have led investors to sell bonds in recent months, pushing yields higher.
Data released last week showed that consumer and producer prices continued to rise in March, fueling investors’ belief that the Federal Reserve could increase the scope of its rate hikes in an attempt to control this inflation.
St. Louis Fed President James Bullard told CNBC’s Steve Liesman Monday that “quite a lot has been priced in” on the Fed’s actions.
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The Russia-Ukraine war has intensified price pressure. The World Bank said on Monday it lowered its annual global growth forecast for 2022 to 3.2% from 4.1%.
Ukraine’s military says Russia’s long-awaited offensive push into eastern Ukraine has begun, with intensified attacks on Monday in the Slobozhansky and Donetsk operational districts in the country’s north and east.
Building permits and housing starts for March are scheduled to be released Tuesday at 8:30 a.m. ET.
— CNBC.com employees contributed to this market report.