The yield on the 10-year US Treasury hit a 14-month high on Tuesday, as investors brace for surging inflation expectations ahead of Biden’s $3 trillion infrastructure plan unveiling in Pittsburgh, Pennsylvania on Wednesday.
The 10-year Treasury note yield hit a high of 1.77% earlier in Tuesday’s session— the highest for the bond note since January 2020. Similarly, the 30-year Treasury note rose to 2.43% before settling at around 2.38%. The increase in yields come one day before US President Joe Biden is scheduled to provide details surrounding his proposed “Build Back Better” infrastructure plan, which is expected to cost upward of $3 trillion.
The recent rise in yields is largely reflective of increasing inflation expectations among investors and the financial community. The latest $1.9 trillion stimulus package signed at the beginning of the month, coupled with the Federal Reserve’s stance on allowing inflation to exceed targets, has left analysts worried that price pressures may come a lot sooner than anticipated.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.