T-yields touch fresh highs amid inflation concerns

US Treasury yields surged on Tuesday, reversing rally after a better than expected rise in JOLTS data. The latest reading fueled investors’ concerns about the Fed’s hawkish stance and prospects of tightening the US monetary policy.

Earlier on Tuesday, Some US government bond yields lightly retreated after inflation data from Europe was either within or lower than market expectations.

But it was a brief retreat after which yield rebounded and resisted pressures that were driving the financial markets on the impact of Fed Chair Jerome Powell’s speech last Friday.

Ten-year Treasury yields US10YT=RR were at 3.108%, the highest since the end of June, while two-year note yields US2YT=RR climbed to 3.466%, hitting a new 15-year high.

The Fed has raised its benchmark overnight interest rate by 225 basis points since March 2022, but the rapid tightening of financial conditions has led investors to weigh inflation concerns against recessionary fears.