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Treasury yields rise as Fed officials warn of longer-lasting inflationary pressure

U.S. Treasury yields rose on Thursday morning, after two Federal Reserve officials warned that higher inflation might be around for longer than anticipated.

The yield on the benchmark 10-year Treasury note rose less than basis point to 1.502% at 3:45 a.m. ET. The yield on the 30-year Treasury bond climbed to 2.129%. Yields move inversely to prices.

Atlanta Fed President Raphael Bostic and Fed Governor Michelle Bowman both said on Wednesday that while they believed inflationary pressures would be temporary, they also thought that prices could remain higher for longer than expected, according to a Reuters report.

This comes after Fed Chairman Jerome Powell played down inflation fears, in comments made to Congress on Tuesday, saying that it was “very, very unlikely” the U.S. would see 1970s-style price pressures.

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As for data due out on Thursday, the number of weekly jobless claims filed for the week ended June 19, is set to be released at 8:30 a.m. ET.

The Fed’s annual bank stress test results are scheduled for release at 4:30 p.m. ET. The test examines how banks fare during various hypothetical economic downturns. After the Fed’s results, banks typically announce how much capital they can release in the form of dividends and buybacks.

Auctions are due to be held Thursday for $40 billion of 4-week bills, $40 billion of 8-week bills and $62 billion of 7-year notes.

CNBC’s Hannah Miao contributed to this market report.

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