U.S. Treasury yields climbed early Wednesday ahead of the release of inflation data for February later that morning.
The yield on the standard 10-year Treasury note rose to 1,553% at 04:10 ET. The yield on the 30-year Treasury bond rose to 2,265%. Yields move inversely to prices.
The February Consumer Price Index should take place on Wednesday at 08:30 ET. Economists expect it to rise by 0.4% in February, or by 1.7% from a year ago.
However, senior tariff strategist Antoine Bouvet told CNBC’s Street Signs Europe “on Wednesday that he did not think this inflation reading would be the” big one “.
He said ING expects large readings to take place only towards the end of the second quarter, which is likely to peak at around 3.5% and higher.
ING predicted that average inflation would reach 2.9% this year and remain at that level next year, and expects the decline to be ‘very slow’.
Concerns about higher inflation have led to higher yields of bonds in recent times.
The $ 1.9 billion fiscal stimulus package is expected to add juice to the economy. This has caused inflation problems, and the market could be outraged by a CPI report that is hotter than expected.
House Democrats plan to pass the stimulus bill on Wednesday, and President Joe Biden is expected to sign it before major unemployment programs expire on Sunday.
Auctions are being held Wednesday for $ 30 billion 119-day bills and $ 38 billion for 9-year 11-month notes.
– CNBC’s Patti Domm contributed to this report.