U.S Bond Yields Projected to Rise Following $271 Billion Bond Auctions

U.S Bond Yields Projected to Rise Following $271 Billion Bond Auctions

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%

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