U.S. Treasury yields rose Monday as pressure on global government bonds resumed, amid higher oil prices and inflation fears. The 10-year note, 30-year bond, and 2-year note all moved higher, tracking similar gains in U.K., French, and Japanese sovereign debt, while investors look ahead to a week of fresh economic data.
The 10-year U.S. Treasury note yield — the benchmark for mortgage borrowing, auto loans and credit card debt — climbed more than 2 basis points to 5.2087% in early dealmaking.
Longer and shorter maturities both climb
The 30-year Treasury bond yield rose 1 basis point to 5.5162%, a maturity more sensitive to geopolitical risk than the benchmark note. The 2-year Treasury note yield, which tracks near-term Federal Reserve rate expectations, moved up more than 4 basis points to 4.9056%. One basis point equals 0.01%, and yields move opposite to prices.
Those moves follow a volatile week for Treasurys. The benchmark 10-year yield reached its highest rate since June 2007 on Thursday before easing, while the 30-year yield touched levels not seen since 2004.
Global bonds move in tandem
Yields elsewhere also rose as anxiety over global government debt and sticky inflation continue to weigh on investors. The yield on 10-year U.K. Gilts climbed 4 basis points to 5.4099%, while German 10-year Bund yields, a eurozone debt benchmark, held steady at 3.6277%. Both French 10-year government debt and Japan's 10-year bond yield moved more than 1 basis point higher early Monday.
Oil climbs, data-heavy week ahead
Global oil prices also moved higher Monday, with West Texas Intermediate futures rising almost 2% to $94.19 a barrel. Investors are now looking ahead to a flurry of domestic economic releases this week, including monthly nonfarm payrolls, the unemployment rate, the core PCE index and the latest quarterly GDP growth print.
Before that, August's JOLTS report, due Tuesday, is expected to show job openings dipped to 7.24 million from 7.27 million in July.
Source: CNBC
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