NEW YORK: US Treasury debt yields edged higher in rangebound trading on Tuesday ahead of a US two-year note auction, supported by generally improved market appetite for risk as stocks and commodities gained.
"Yields have rallied quite sharply off the lows," said Gennadiy Goldberg, interest rates strategist at TD Securities in New York. "I see stocks have bounced very sharply, so this could just be risk sentiment. But the market is rangebound, so all these moves are happening within a tight range."
Benchmark US 10-year and two-year Treasury note yields rose after falling for two straight days.
Investors were also looking ahead to Wednesday's release of the Federal Reserve's minutes of its latest meeting for clues on the timing of the next interest rate hike. Fed Chair Janet Yellen said last week that an increase would be considered at every policy meeting, suggesting the US central bank could move next month.
"Our gut suggests that the Fed will want to keep jaw boning the market to price in greater probabilities of hikes and makes us lean somewhat hawkishly as a bias in terms of what to expect from the Fed," said Ian Lyngen, head of US rates strategy at BMO Capital Markets.
Comments
Comments are closed for this article.