US Treasury yields rose early Wednesday, before February inflation data was released later in the morning.
The yield on the 10-year Treasury benchmark increased to 1.553% at 4:10 AM ET. The yield on the 30-year treasury bond rose to 2.265%. Yields move in the opposite direction to prices.
The February consumer price index will be released on Wednesday at 8:30 AM ET. Economists expect it to grow by 0.4% in February or 1.7% from a year ago.
However, ING senior strategist Antoine Bouvet told CNBC’s “Street Signs Europe” on Wednesday that he did not think this inflation reading would be “the highest”.
He said ING expected the high readings to take place only towards the end of the second quarter, “reaching a maximum of 3.5% or more”.
ING had estimated that average inflation would reach 2.9% this year and remain at that level next year, expecting the decline to be “very slow”.
Concerns about higher inflation have recently led to rising bond yields.
The $ 1.9 trillion tax incentive package will wait to bring juice to the economy. This has raised inflation concerns, and the market could be horrified by a CPI ratio that is hotter than expected.
House Democrats plan to pass the stimulus bill on Wednesday, with President Joe Biden to sign it before key unemployment programs expire on Sunday.
The auctions will take place on Wednesday for $ 30 billion for 119-day bills and $ 38 billion for 9-year, 11-month tickets.
– Patti Domm of CNBC contributed to this report.