US: 10-year T-bond yield extends slide ahead of 30-year auction
|The 10-year US Treasury bond yield lost nearly 2% on Tuesday and snapped its five-day winning streak. Ahead of the 30-year bond auction at 1800 GMT, the 10-year T-bond yield continues to push lower and was last seen losing 2% at 1.10%.
Earlier in the day, the data published by the US Bureau of Labor Statistics showed that the Consumer Price Index in December rose to 1.4% on a yearly basis from 1.2% and came in higher than analysts' estimate of 1.3%. Although this reading was largely ignored by market participants, T-bond yields are likely to continue to edge higher with dovish Fed policy and fiscal stimulus ramping up inflation.
While speaking at the Reuters Next conference on Wednesday, "no matter what theory of inflation you subscribe to, they all are pointing in the direction, toward an increase," said St. Louis Federal Reserve President James Bullard.
In the meantime, falling T-bond yields don't seem to be having a significant impact on the greenback's performance against its rivals. As of writing, the US Dollar Index was up 0.28% on the day at 90.34.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.