US Treasury yields rose on Wednesday morning, before the release of inflation data for February late in the morning.
The yield on the 10-year reference Treasury note rose to 1.553% at 4:10 am ET. Yield on 30-year Treasury bills rose to 2.265%. Yields move inversely to prices.
The February consumer price index is expected to be released at 8:30 am Eastern Time on Wednesday. Economists expect it to have risen 0.4% in February, or 1.7% over the previous year.
However, ING’s senior rate strategist, Antoine Bouvet, told CNBC’s “Street Signs Europe” on Wednesday that he did not think this inflation reading would be the “big”.
He said that ING expects large readings to occur only towards the end of the second quarter, “potentially peaking at around 3.5% or more.”
ING predicted that average inflation would reach 2.9% this year and remain at that level next year, expecting the decline to be “very slow”.
Concerns about higher inflation have been increasing bond yields recently.
The $ 1.9 trillion fiscal stimulus package is expected to add energy to the economy. This has raised concerns about inflation, and the market may be frightened by a warmer-than-expected CPI report.
House Democrats intend to approve the stimulus bill on Wednesday, and President Joe Biden must sign it before major unemployment programs expire on Sunday.
The auctions will be held on Wednesday for $ 30 billion in 119-day notes and $ 38 billion in 9-year and 11-month notes.
– Patti Domm of CNBC contributed to this report.