US Treasury yields rose early Wednesday, ahead of the release of inflation data for February later in the morning.
The yield on the benchmark 10-year Treasury bill rose to 1.553% at 4:10 am ET. The yield on the 30-year government bond rose to 2.265%. Revenues move inversely with prices.
February’s consumer price index comes out Wednesday at 8:30 a.m. ET. Economists expect it to be up 0.4% in February, or 1.7% more than a year ago.
Antoine Bouvet, senior interest rate strategist at ING, told CNBC’s “Street Signs Europe” on Wednesday that he did not think this inflation would be the “big one”.
He said ING does not expect big results to take place until the end of the second quarter, “possibly peaking at around 3.5% and above.”
ING had predicted that average inflation will be 2.9% this year and remain at that level next year, with the expectation that the decline will be ‘very slow’.
Concerns about higher inflation have pushed bond yields up recently.
The $ 1.9 trillion fiscal stimulus package is expected to boost the economy. That has raised concerns about inflation, and the market could be shocked by a CPI report that is hotter than expected.
House Democrats aim to pass the stimulus bill on Wednesday, while President Joe Biden is expected to sign it before major unemployment programs expire on Sunday.
Auctions will be held Wednesday for $ 30 billion in 119-day bills and $ 38 billion in 9-year and 11-month notes.
CNBC’s Patti Domm contributed to this report.