Treasuries Fall, but yields surge ahead of U. S. Jobs Data

Treasuries fell on Tuesday as investors focus on the assessment of the state of the U. S. economy before important payroll report Friday.

Rising yields have increased market-implied inflation expectations. Breakeven inflation rate for 10-year TIPS approaches 2.5%.

The U.S. Treasury yields climbed Tuesday as rising energy prices stoked inflation fears. The benchmark 10 year note’s yield rose nearly 6 basis points to 1.536%, the highest since 30 September, before stabilizing around 1.52%.

The 30 year bond’s yield is at 2.09% is above closing levels since June amid rising energy prices that ignited inflation fears.