10-Year Treasury Yield Extends Pre-Auction Fall of 30-Year Bonds

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The 10-year US Treasury yield lost nearly 2% on Tuesday, snapping its five-day winning streak. Ahead of the 30-year bond auction at 18:00 GMT, the 10-year Treasury yield continues to decline, losing 2% on the day. in 1.10%.

Earlier in the day, data released by the U.S. Bureau of Labor Statistics showed that the CPI consumer price index in December rose to 1.4% annually from 1.2% and exceeded analysts’ estimate of 1.3%. Although this reading was largely ignored by market participants, Treasury bond yields are likely to continue to rise with the Fed’s dovish policy and fiscal stimulus increasing inflation.

While speaking at the Reuters Next conference on Wednesday, the chairman of the St. Louis Federal Reserve, James Bullard has said that “no matter which inflation theory you subscribe to, they all point in the direction of an increase”.

Meanwhile, falling Treasury yields do not appear to have a significant impact on the dollar’s performance against its rivals. At the time of writing, the US Dollar DXY Index is up 0.28% on the day at 90.34.

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