Treasury yields have not modified a lot earlier than inflation information and infrastructure reconciliation
US Treasury bond yields barely changed early Tuesday as investors digested employment data and comments from Federal Reserve officials as they waited for key inflation data later that week.
The benchmark 10-year government bond yield slipped 14 basis points to 1.3152%, while the 30-year government bond yield hovered around the flatline at 1.9617%. The returns move inversely to the prices.
Yields rose on Monday after job vacancies rose to a record high of 10.1 million in June, as hiring has also increased, according to the latest figures from the Department of Labor. Supply bottlenecks have weighed on the labor market recovery, even if the economy is recovering as a whole.
Employment data is one of the main economic indicators used by the Federal Reserve to determine when it will start tightening monetary policy, along with inflation readings.
The consumer price index and producer price index, both of which measure inflation, are due to be released on Wednesday and Thursday, respectively.
On Monday, two Fed officials hinted that the pace of the US recovery and increased inflation could spark a discussion about the central bank initiating rate hikes.
Meanwhile, the U.S. Senate will vote on Tuesday the $ 1 trillion bipartisan infrastructure bill, a major priority for President Joe Biden, before a new debate on expanding welfare programs by $ 3.5 billion. Dollar starts.
On the data front, tentative second quarter labor and non-farm productivity measurements are due at 8:30 a.m. ET.
Treasury auctions will cost $ 34 billion
– CNBC’s Vicky McKeever and Tanaya Macheel contributed to this report.