U.S. Treasury yields ticked up on Tuesday as rising energy costs weighed on sentiment, with investors holding out for a slate of crucial economic data due this week, including wholesale inflation figures. The 10-year Treasury yield, which serves as a benchmark for mortgage rates, auto loans, and other credit, climbed more than 2 basis points to 4.8063%. The 30-year bond yield, which often moves on geopolitical events, also rose 2 basis points to 5.2708%.
Meanwhile, the rate-sensitive 2-year Treasury yield, which closely tracks the Federal Reserve's short-term policy expectations, held steady at 4.3810%. For context, one basis point equals 0.01%, and bond yields move inversely to bond prices.
Here's a snapshot of the latest yields across key maturities: The 10-year note stood at 4.794%, up 0.01%; the 1-month bill was at 3.736%, up 0.01; the 21-year bond was at 4.13%, down 0.003; the 2-year note at 4.368%, down 0.011; and the 30-year bond at 5.262%, up 0.016. Shorter-term debt also saw movement, with the 3-month bill at 3.867%, up 0.01, and the 6-month bill at 4.013%, up 0.008.
With markets reopening after the long Labor Day weekend, borrowing costs ticked higher as traders turned their focus to a series of domestic data points due out this week. Chief among them is the August Producer Price Index (PPI), a key gauge of wholesale inflation, set for release on Thursday. Economists forecast a 0.4% month-over-month increase in the index, which tracks the prices businesses pay for goods and services and serves as a vital signal for underlying inflationary pressures.
The move higher in yields follows Friday's jobs report, which showed the U.S. economy added 162,000 jobs in August—far exceeding the consensus estimate of 53,000. That stronger-than-expected labor data has sharpened investor focus on the Federal Reserve's next policy move. The Federal Open Market Committee (FOMC), which sets interest rates, is slated to convene on September 15-16.
Ongoing conflict in the Middle East continues to muddy the inflation outlook, with Brent crude futures edging toward the $100-per-barrel mark in early Tuesday trading. Saudi Arabia's energy ministry reported that some production facilities had been temporarily halted following attacks by Iran-backed Houthi rebels in Yemen. In response, New York-traded West Texas Intermediate (WTI) crude jumped more than 3% to $94.20 a barrel, while the global benchmark Brent crude advanced 1.76% to $98.71 a barrel.
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