U.S. Treasury yields rose early Wednesday, ahead of the release of February inflation data later in the morning.
The yield on the 10-year benchmark rose to 1.553% at 4:10 am ET. The yield on the 30-year Treasury bond rose to 2.265%. Yields are reversed to prices.
The February consumer price index is due to be released on Wednesday at 8:30 am ET. Economists expect it to have risen 0.4% in February, or 1.7% more than a year ago.
However, ING’s senior rate strategist Antoine Bouvet told CNBC’s “Street Signs Europe” on Wednesday that he did not believe this inflation reading was the “big one”.
He said ING expected the big readings to only come at the end of the second quarter, “potentially peaking at around 3.5%”.
ING had predicted 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 boosted bond yields recently.
The $ 1.9 trillion fiscal stimulus package is expected to add juice to the economy. This has raised concerns about inflation and the market could be scared by a CPI report that is hotter than expected.
House Democrats plan to pass the stimulus bill Wednesday, and President Joe Biden is expected to sign it before major unemployment programs expire on Sunday.
Auctions of $ 30 billion in 119-day bills and $ 38 billion in 11-month to 9-year bills will be held on Wednesday.
– CNBC’s Patti Domm contributed to this report.