US Treasury yields remained slightly higher at 1.62% on Tuesday following a solid three-year note auction and ahead of a 10- and 30-year note offering later this week, testing investors’ appetite for government debt. The yield on the US 10-year Treasury note has been rising since last week on worries that soaring commodity prices and supply chain issues could create inflationary pressures that would erode the returns on such fixed-income securities. Investors now await key CPI and PPI data for the US scheduled for Wednesday and Thursday, respectively. A measure of US inflation expectations showed American consumers see inflation at 3.4%, the highest level since September 2013.
. source: U.S. Department of the Treasury
Historically, the United States Government Bond 10Y reached an all time high of 15.82 in September of 1981. United States Government Bond 10Y - data, forecasts, historical chart - was last updated on May of 2021.
The United States Government Bond 10Y is expected to trade at 1.66 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.82 in 12 months time.