The U.S. 10-year Treasury yields climbed above 1.77% on Tuesday boosted by coronavirus vaccine rollouts and planned infrastructure spending. The yield on the benchmark 10-year Treasury note rose to 1.76% at 7:23 a.m. ET, topping 1.7% earlier in the session while the 30-year Treasury bond rose to 2.456%.
The rise in yields came a day ahead of President Joe Biden revealing details of his infrastructure plan with a recovery package that will include up to $3 trillion in spending across several sectors
Analysts say the stimulus and any infrastructure plan will prove to be a ‘sugar rush” for the economy given the secular headwinds.
The jump in yields is happening at the back of rising concerns of inflation, as the U.S. economy starts to bounce back.
Credit Suisse strategists expect the 10-year yield to hit 2% in the second quarter while an analyst from ING projects it will climb “well above” 2%.
The U.S. 10-year U.S. Treasury note yield is currently 1.75%
