Treasury yields drifted higher on Tuesday morning, as U.S. markets reopened following Presidents Day.
The yield on the benchmark 10-year Treasury note climbed to 1.27% at around 10:45 a.m. ET, breaking above a the key level of 1.25% for the first time since March 2020. Meanwhile, the yield on the 30-year Treasury bond rose to 2.08%. Yields move inversely to prices.
” Given the fact rates are edging higher on a combination of bearish underpinnings as opposed to a distinct driver, the technical landscape is useful in gauging the extent to which any repricing may extend,” Ian Lyngen, head of U.S. rate strategy at Bank of America Capital Markets told clients.
Treasury yields were higher as investors continued to watch for progress on President Joe Biden’s proposed $1.9 trillion stimulus package in Congress, as well as the coronavirus vaccine rollout in the U.S.
February data from the New York Empire State manufacturing index is due out at 8:30 a.m. ET.
Federal Reserve Governor Michelle Bowman is expected to speak at the American Bankers Association Conference for Community Bankers at 11:10 a.m. ET.
December data for net U.S. Treasury international capital flows, as well as net purchases of U.S. Treasury bonds and notes, is expected to be published at 4 p.m. ET.
Auctions will be held Tuesday for $54 billion of 13-week bills, $51 billion of 26-week bills, $30 billion of 119-day bills and $30 billion of 42-day bills.
— with reporting from CNBC’s Yun Li.
