US Treasury yields dipped after Tuesday’s brief jump

Treasury yields have been in focus again prior to the open, with the yield on the benchmark 10-year Treasury note rising more than 11 basis points to 3.314%, while its 2-year counterpart rose about eight basis points to 3.481%.

Wednesday’s moves come after the 10-year note jumped to its highest level since June in the previous session and the rate on the 30-year Treasury closed at its highest level since 2014.

The government bonds are boosted by Tuesday’s positive data highlighting a significant improvement in the performance of the service sector in the United States.

These positive data raised expectations that the improvement in economic conditions would reinforce the Fed’s path towards further rate hikes.

Yields’ decline came after the US Treasury bonds reached a state of saturation, which led to a sharp decline in those bonds, which resulted in purchases to cover losses Thursday, which raised the value of those securities.

There is an inverse relationship between the yields of US Treasury bonds and their yields, which makes the appreciation in value a direct cause of declining yields.

The 10-year US Treasury yield fell to 3.282%, compared to the last daily close of 3.349%. Yields rose to the highest level in the current trading day at 3.368% compared to the lowest levels recorded at 3.275%.