US Treasury yields rose on Tuesday as investors awaited the release of new economic data on the first trading day of the week.
The benchmark 10-year Treasury yield was almost 3 basis points higher at 3.269%, while the 30-year Treasury yield traded 4.5 basis points higher at 3.339%. Yields move inversely with prices.
US markets were closed on Monday for the June 16 holiday.
Tuesday’s trading session comes after a volatile week in which major central banks signaled more aggressive efforts to curb rising inflation.
The Federal Reserve hiked interest rates by 75 basis points on Wednesday, the largest hike since 1994, with annual US inflation in May at a 40-year high of 8.6%.
The Swiss National Bank then surprised markets on Thursday with its first rate hike in 15 years, while the Bank of England implemented its fifth straight rate hike.
The Fed “will continue to hike rates until inflation falls unless one of three things happens,” wrote Joe Kalish, chief strategist for global macros at Ned Davis Research.
“First, it’s about liquidity and the functioning of financial markets,” he said. “Persistently high levels and the inability of companies to tap capital markets would give the Fed a red light.”
“Next are financial conditions that signal a recession. These include credit spread breakouts and recessionary bear markets in stocks. Credit spreads are still giving the Fed the green light while stocks are flashing amber,” added Kalish. “Last is rising unemployment. While the job market is still judged to be tight, fewer job vacancies and rising jobless claims could soon reverse that yellow.”
On the data front, the Philadelphia Fed’s June non-manufacturing survey will be released at around 8:30 am ET, with May existing home sales to follow a little later in the session.
– CNBC’s Samantha Subin and Elliot Smith contributed to this report.