U.S. Treasury yields rose on Wednesday amid developments in the Russia-Ukraine crisis.
The yield on the benchmark 10-year Treasury note climbed 3.8 basis points to 1.986% at around 4:00 p.m. ET. The yield on the 30-year Treasury bond moved 4 basis point higher to 2.293%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
President Joe Biden on Tuesday announced sanctions against Russia, which targeted the country’s banks, sovereign debt and three individuals.
The EU and the U.K. also announced sanctions against Russia earlier on Tuesday.
The announcements came after President Vladimir Putin ordered troops into two breakaway regions of eastern Ukraine.
Analysts have said Russia’s incursion into Ukraine could make the outlook for Federal Reserve interest rate hikes less clear. Tensions have pushed up the price of oil and gasoline, which could drive inflation higher, complicating the Fed’s strategy to control higher prices.
Wall Street is betting that there’s a 100% chance of a rate hike at the Federal Reserve’s March meeting, according to the CME Group’s FedWatch tool. With inflation running hot, calls for a 50-basis point hike at the March meeting had been accelerating.
There are no major economic data releases due out on Wednesday.
Auctions are scheduled to be held for $35 billion of 119-day bills, $53 billion of 5-year notes and $22 billion of 2-year floating-rate notes.
— CNBC’s Pippa Stevens contributed to this market report.
