Treasury revenues increase ahead of significant inflation report

The 10-year US Treasury yield hit 2.82% on Tuesday morning, the highest point since December 2018.

The yield on the benchmark 10-year Treasury note stood 3 basis points to 2.8205% at 4:15 am ET. Yields on the 30-year Treasury bond moved 1 basis point higher to 2.8353%. Yields move inversely to prices and 1 basis point equals 0.01%.

The spike in the 10-year rate comes ahead of important inflation data.

The March Consumer Price Index is up Tuesday at 8:30 a.m. ET. The figures are expected to show a 8.4% increase in prices – the highest level since December 1981 – according to economists surveyed by Dow Jones, with rising food costs, rents and energy prices expected to be the main contributors to the spike.

The March Producer Price Index is set to show ET at 8:30 a.m. Wednesday.

These inflation readings are key in determining how aggressive the Federal Reserve will be in tightening monetary policy.

Rising prices and a more hawkish Fed have given rise to investor fears that a recession may be on the horizon, as seen in the reversal of bond yields. Investors have sold out of shorter-dated Treasuries in favor of longer-dated debts, expressing their concerns about the short-term strength of the economy, although rates were back on Tuesday.

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Nigel Bolton, co-chief investment officer at BlackRock Fundamental Equities, told CNBC’s “Squawk Box Europe” on Tuesday that rising market volatility reflected concerns about central banks making “policy mistakes” and rolling into a global recession that lasted 12 to 18 months is. “

However, Bolton said he did not think a recession was “definitely on the cards”.

Fed Governor Lael Brainard will speak at the Wall Street Journal Jobs Summit on Tuesday at 12:10 p.m.

In addition to inflation data, the April IBD / TIPP economic optimization index is on Tuesday at 10 a.m. ET.

An auction is scheduled to be held Tuesday for $ 34 billion in 10-year notes.

, Samantha Subin contributed to this market report.


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