Treasury yields drifted higher on Tuesday morning, with the 10-year Treasury hitting a level not seen since February 2020.
The yield on the benchmark 10-year Treasury note climbed to 1.28% at around 12:30 p.m. ET, breaking above a the 1.28% level for the first time since February 2020. Meanwhile, the yield on the 30-year Treasury bond rose to 2.08%. Yields move inversely to prices.
“That opens up the 1.50% level,” said John Briggs, head of strategy at NatWest Markets.
The 10-year benchmark is widely watched as it influences mortgages and other loans.
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 and Patti Domm.
