U.S. Treasury yields rose on the first day of June on Wednesday, with investors focused on rising inflation and interest rate hikes.
The yield on the benchmark 10-year Treasury note climbed 2 basis points to 2.866% as of 6:18 a.m. ET. The yield on the 30-year Treasury bond moved slightly higher to 3.063%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Treasurys
Rising prices around the world remain a key concern for investors, with euro zone inflation hitting 8.1% in May, according to data released on Tuesday.
The effect of central bank interest rate hikes on economic growth also continues to worry investors. Federal Reserve Governor Christopher Waller said in remarks delivered in Frankfurt, Germany, on Monday that he isn’t “taking 50-basis-point hikes off the table” until he sees inflation come back closer to the central bank’s 2% target.
Will Hobbs, chief investment officer at Barclays Wealth & Investments, told CNBC’s “Squawk Box Europe” on Wednesday that looking at a number of inflation forecasts for a year from now, “the range from top to bottom is as wide as we’ve seen since the early 80s.”
“So you’ve got that huge uncertainty about the inflation outlook, people are just not yet sure quite whether central banks are going to do enough, whether we’re in this new paradigm for inflation and that creates extra uncertainty on top of a global economy which is being buffeted by gigantic forces,” he said.
In terms of data releases due out on Wednesday, April’s Job Openings and Labor Turnover Survey is set to come out at 10 a.m. ET. May’s manufacturing data, along with April construction spending figures, are also slated for release at 10 a.m. ET.
