U.S. Treasury yields surged higher on Tuesday as investors responded to strong U.S. economic data.
The yield on the benchmark 10-year Treasury note traded higher by more than 14 basis points at 3.328% at around 10 a.m. ET, while the yield on the 30-year Treasury bond gained nearly 13 basis points to 3.472%.
The yield on the 2-year Treasury note jumped 9 basis points to trade at 3.493%. The short-term note climbed to 3.55% last week, notching its highest level since 2007. Yields move inversely to prices, and a basis point is equal to 0.01%.
On the data front, the Institute for Supply Management’s non-manufacturing PMI figure for August came in better-than-expected at 56.9, rising month over month. Economists surveyed by Dow Jones were expecting a reading of 55.5. Yields extended their gains for the session after the report was released.
The data points come amid persistent worries about an economic slowdown, with investors monitoring whether the Federal Reserve is likely to continue hiking interest rates at an aggressive pace in a bid to tame soaring inflation.
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