U.S Treasury auctions offering of $271 billion new debt could reignite a rise in bond yields and a fall in prices, according to Reuters. U.S inflation data for March, set for release on Tuesday, might also drive yields higher.
The Treasury will auction $24 billion of 30-year bonds in Tuesday and a total of $151 billion in bills throughout the week
Investors expect a weak demand at upcoming auctions, which starts on Monday, with bond prices falling and yields increasing at a slower pace than in the first quarter.
The benchmark 10-year yield rose more than 80 basis points in the first quarter on economic growth expectations, higher inflation, and estimated $4 trillion in new debt to be issued this year.
Interest will be the auction of three-and 10-year notes on Monday, worth $96 billion in total
Some analysts see a greater demand for Treasuries now than during March, which could cap any rise in rates.
U.S consumer data is also expected to drive yields higher as longer-dated yields rise with inflation expectations.
U.S 10-year Treasury yield is currently 1.657%
