Bond Yields Surge as US Stocks Close Slightly Lower on Inflation Worries
US stocks closed slightly lower on Tuesday as government bond yields continued their ascent. The yield on the 30-year Treasury bond reached 5.6206%, its highest since June 2002, while the benchmark 10-year Treasury bond climbed to 5.293%, its highest level since June 2007.
However, investors' concerns were somewhat alleviated as shorter-duration yields declined and oil prices retreated on signs of a recovery in exports from the Middle East and comments from Federal Reserve Bank of New York President John Williams.
Williams expressed patience for more rate hikes, saying the Fed has time to weigh data before deciding when to hike interest rates again. This sentiment was echoed by several key economic releases due this week, including the Personal Consumption Expenditures Price Index and labor market data.