Treasury yields fall as inflation fears ease

  • The March S&P/Case-Shiller home price index is due out at 9 a.m. ET on Tuesday.
  • New home sales data for April is then expected to be released at 10 a.m. ET.

U.S. Treasury yields fell on Tuesday morning, following recent comments from Federal Reserve officials, allaying fears around inflation.

The yield on the benchmark 10-year Treasury note fell to 1.591% at 4:20 a.m. ET. The yield on the 30-year Treasury bond dipped to 2.283%. Yields move inversely to prices.

Treasurys

Fed officials, including Governor Lael Brainard and the central bank's Atlanta President Raphael Bostic, have made comments recently playing down rising inflation and concerns about tightening of easy monetary policy.

Kansas City Fed President Esther George said on Monday that it would be important not to stick to a "rigid formulation of policy reactions" as the economic picture changes, according to a Reuters report.

CNBC PRO:

Mohamed El-Erian says volatility in the price of cryptocurrency is here to stay

Cramer sees 'one more cathartic decline' in bitcoin as a buy sign to those who missed crypto craze

Fed Vice Chair for Supervision Randal Quarles is due to speak before the U.S. Senate Committee on Banking, Housing and Urban Affairs at 10 a.m. ET on Tuesday.

In terms of data Tuesday, the March S&P/Case-Shiller home price index is due out at 9 a.m. ET. New home sales data for April is then expected to be released at 10 a.m. ET.

Auctions will be held Tuesday for $40 billion of 42-day bills and $60 billion of 2-year notes.

Source: Read Full Article