U.S. 10-year treasury bond yield climbed to 2.75% for first time since March 2019 as investors weigh fast pace inflation and impact of Federal Reserver’s policy tightening plan.
The 10-year benchmark yield jumped as much as five basis points after surging 32 basis points last week when the Federal Reserve Governor Lael Brainard said the central bank will raise interest rates steadily while starting balance-sheet reduction as soon as May.
Later on Wednesday last week, Federal Reserve’s meeting minutes showed Fed’s plain to offload bond holdings at a pace of $95 billion a month.
U.S. inflation is expected to jump to 1.2% in March compared to gauge in February – underscoring the highest monthly reading in more than 15 years, according to Bloomberg consensus of economists. The official figure is set to be released on Tuesday.