U.S. Treasury yields rose Monday amid concerns of surging inflation pressures and slower economic growth.
The yield on the benchmark 10-year Treasury note climbed to its highest level since November 2018, and was last up 6 basis points at 3.185%. The yield on the 30-year Treasury bond moved 7 basis points higher to 3.293%. Yields move inversely to prices, and 1 basis point is equal to 0.01%.
Treasurys
The 10-year rate broke above 3% mark at the beginning of last week.
The Federal Reserve announced a 50-basis-point interest rate hike on Wednesday but the central bank’s efforts to combat rising inflation with more aggressive rate raises has also sparked concerns that this could potentially drag on economic growth.
“To start the year, we knew that central bank tightening would make for a challenging market,” wrote Tom Essaye of The Sevens Report. “But that has been compounded by two surprise events: The Russia/Ukraine war (no one expected that in January) and Chinese lock-downs (it’s quasi-shocking the Chinese are still adopting these policies and crushing their economy).”
“Again, this all matters because of economic growth,” he added. “
Regarding the war in Ukraine, U.S. first lady Jill Biden made a surprise visit to the country on Sunday. The U.S. and Group of Seven countries announced that they would increase short-term financial support for Ukraine as the war with Russia nears the three-month mark.
— CNBC’s Jesse Pound contributed to this market report.
