NEW YORK (dpa-AFX) – The prices of US government bonds extended the losses in late trading on Tuesday. After the holiday-related break at the beginning of the week, the futures contract for ten-year Treasuries (T-Note Future) fell by 0.55 percent to 127.48 points. In contrast, the yield on ten-year government bonds rose to 1.86 percent. It reached its highest level since early 2020.
Bond yields have been trending higher for some time now, as inflation in the US is currently high at 7%, making it more likely that the US Federal Reserve will take countermeasures. Experts expect up to four interest rate hikes of 0.25 percentage points each in 2022.
Meanwhile, weak economic data failed to support US government bonds. The mood in industrial companies in the US state of New York deteriorated significantly at the beginning of the year. According to observers, however, inflation data is currently clearly determining what is happening on the US bond market./bek/stw