Treasury Yields Rebound Amid Global Bond Sell-Off
US Treasury yields retreated from earlier highs on Tuesday despite concerns over the Iran conflict and a broader global bond selloff. Analysts noted that economic data is light, contributing to market indecision.
The US dollar banknotes illustration shows the current state of global markets, with investors wary of potential disruptions in trade. In related news, U.S. President Donald Trump stated that no talks are taking place with Iran and none are scheduled, contradicting an Iranian assertion that the Strait of Hormuz remains closed to shipping.
The Federal Reserve's release of minutes from its most recent meeting will provide insight into policymakers' views on interest rates. The US is also due to auction 20-year bonds. As a result, yields on benchmark US Treasury notes decreased: the 10-year note fell by 1.6 basis points to 4.708%, while the 30-year bond dropped by 2.6 basis points to 5.284%.
The two-year US Treasury yield, which typically moves in step with interest rate expectations for the Federal Reserve, declined by 0.5 basis points to 4.177%. The breakeven rate on five-year TIPS was last at 2.277%, indicating a market expectation of about 2.3% annual inflation over the next decade.